InfoSAWIT, JAKARTA –The palm oil downstream export from Indonesia to European markets would increase because of the cooperation between Sinar Mas Agribusines and Food and Spain energy company, Cepsa. Both sides built oleochemical factory in the national palm oil production center that the production is integrated – from the upstream to downstream sectors.
Secretary of Industry, Airlangga Hartarto said, the cooperation should not be seen from the business only, but also it could develop the palm oil exports from Indonesia to Europe. “The same network with Europe is important. So the joint venture is hoped to bring the good name of CPO from Indonesia,” he said in the official statement that InfoSAWIT got.
He also said, palm oil industry is one strategic sector for Indonesia for it is the biggest producer and exporter in the world. It could hire up to 21 million workers directly and indirectly. Palm oil also contributed about US $ 20 billion in 2016.
In the process industry, Indonesia still has the chance to be the global center for the food and non food material, and the material of renewable energy. The Ministry also noted, Indonesia contributed about 48% of the world CPO production, and mastered 52% of palm oil exports.
“These are the big powers to the domestic and international market constellation for the downstream vegetable oil,” he said.
Chairman Sinar Mas Agribusiness and Food, Franky O. Widjaja said, the joint venture is created within the vision to be the advanced fatty alcohol producer in vegetable oil – base and the derivative in the global scale and the sustainable chain of stock.
In addition fatty alcohol in vegetable - base is more to sell as the material for personal care products and liquid detergent. “We do our effort to increase the additional value of palm oil derivative products and create the employement in Indonesia,” he said.
The Rp 4,77 billion oleochemical factory would produce fatty acid, and fatty alcohol within 160.000 metric tons of capacity per year and would be sold in Asian, Eastern Europe, and also Western Europe. The factory would directly hire 300 workers from Indonesia.
“We would support the industrial development in chemical industry through the knowledge transfer and the sustainable advanced technology implementation,” Deputy CEO, Sinar Mas Cepsa, José María Solana said. (T3)
