(MENAFNEditorial)
JAKARTA May 8 2015—Pertamina plans to enter plantation sector for biodiesel development through the establishment of a joint venture with another state-owned company engaging in the plantation business.
PT Pertamina Gas Directorate Technology & Product Development Manager Andianto Hidayat said the state-owned oil and gas company has allocated US$200 million for development of biodiesel and green diesel.
“The joint venture could be in the form of merger and acquisition because we do not have expertise in agriculture and plantation. Later we will equally maintain the plantation to utilize its results” he said on the sidelines of ICEPO Thursday (5/7).
For plantation development the fund is a long-term investment that has also been used from the beginning including land clearing and refinery construction.
The possibility for the joint venture has been communicated with PTPN in Sumatra and Kalimantan but there is still no agreement.
So far he claims to have established intensive communication with the National Energy Council (DEN) to be able to provide land for the biofuel joint venture. Under the cooperation PT Pertamina targets to fulfill internal needs of the biodiesel around 2000 kiloliters per year.
“With the determination of B15 scheme we will take 3000 kl from the market” he said.
Nevertheless Andianto said the joint venture is yet to be initiated soon considering the price of global crude oil that is currently at a low level would reduce the economic value of such business activity.
Andianto predicts the cooperation will begin in one to two years while waiting for normal movement of crude oil price. However the project has been included in PT Pertamina’s strategic plan 2015-2019.
Director General of Plantation Gamal Nasir said Pertamina should also consider absorbing biodiesel produced in the country apart from entering into the upstream sector through the opening of plantation. Read more..
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