Bumi Waras to build CPO processing plant in Bengkulu

Antara News, Sunday, December 13, 2009 17:48 WIB

Bengkulu (ANTARA News) - National Investor Bumi Waras (BM) Group will build a CPO (Crude Palm Oil) processing plant in Pino Raya sub district, South Bengkulu District, Bengkulu Province.

The company would invest tens of billions of rupiahs for the CPO processing plant, according to Risman Sipayung, head of the Bengkulu provincial plantation service, here on Sunday.

The construction work of the CPO processing plant would begin early 2010, he said.

The plant would need around 200 tons of CPO to be processed daily, he said. There are a number of oil palm plantations around Pino Raya sub district which could supply the company with oil palm.

The factory is expected to produce margarine and cooking oil, while its residue could be used to produce fodder, material to make soap and lauryl alcohol.

Indonesia`s crude palm oil (CPO) production next year is projected to increase by 1 - 1.5 million tons from this year`s production estimated to reach more than 20 million tons, analysts said.

"Indonesia`s CPO production in 2010 will increase by 1 - 1.5 million tons from this year`s estimated figure at 20 million tons. The 2010 prediction is realistic, though it could reach 2 million tons," Dorab E Mistry of Godjred International Ltd said recently.

Speaking at the "Indonesia Palm Oil Conference and Outlook 2010," Dorab said that the increase in Indonesia`s CPO production would happen because Indonesia had fast areas and was active in expanding plantations, particularly in 2007 that would boost its production next year.