BPPT-Medco To Cooperate In Developing Bio-Diesel Indusrty

Jakarta, Oct 24 (ANTARA) - The Technology Study and Development Center (BPPT) is cooperating with PT Medco Inti Dinamika to develop bio-diesel industry in the country. "One of our priority programs is to develop technology in the production of bio-diesel," BPPT chief Marzan A Iskandar said after signing a memorandum of understanding (MoU) here with the Medco Group on Wednesday. Marzan said BPPT has been able to develop a technology to produce high quality bio-diesel with production of up to 30 tons per day. Meanwhile, Riza, another executive of BPPT said cooperation with Medco, in addition to developing production technology by building laboratory to produce sample, will also include cooperation in research to build bio-diesel factories. In order to produce bio-diesel on industrial scale, the cooperation need to focus on construction of a bio-diesel factory, Riza added. He said the price of bio-diesel to be produced by the factory would be competitive in facing diesel oil from fossil. So far the production cost has depended much on the price of crude palm oil , the main feedstock for bio-diesel. Arifin Panigoro, the founder of PT Medco Energi International, the holding company of the Medco Group, said he was optimistic Indonesia could produce up to 100 million tons of bio-diesel per year. Arifin said state-owned energy company PT Pertamina could be like Petrobras of Brazil having a commanding presence in the world`s bio-diesel market. "Currently the country produces around 30 million tons of CPO a year and it could go up to 50 million tons a year later," he said.