Hyundai, LG to construct biodiesel factories in Indonesia

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West Kalimantan Governor Sutarmidji has said Korean companies  Hyundai and LG will construct biodiesel factories in the province amid the government’s effort to expand the domestic use of the fuel through its mandatory 20 percent blended biodiesel ( B20 ) policy.

“We welcome the plan. The opening of the downstream business is in line with the [increasing] demand for biodiesel,” said West Kalimantan Governor Sutarmidji in Pontianak on Sunday as reported by Antara news agency.

He said the Korean investors would apply environmentally friendly technology as they would manufacture the waste of oil palm bunches into biodiesel.

“Our oil palm waste will be manufactured into biodiesel, which will meet the increasing demand for the fuel,” the governor said, adding that the construction of the factories would help create jobs in the province.

He pledged to facilitate the two companies with quick permit issuance for the factories, which are to be constructed in Kubu Raya regency. He said the regency had been selected for its close proximity to the airport and seaport.

“As long as the investment is also good for the people and there is transparency, there is no reason for us not to immediately issue the permits,” he said, calling on Hyundai and LG to submit their official proposals soon. (bbn)

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