State-owned forestry company PT Inhutani and its South Korean partner known here as PT SL Agro Industry plans to set up a wood pellet production facility this year.
Inhutani President Director, Sri Sudiharto was quoted on Monday by Kontan as saying that total investment for the planned project is about Rp 42 billion. The South Korean firm would provide the entire financing, while the local company would ensure raw material supply.
Sudiharto said that the wood pellet production facility will have a capacity of 30,000 tons per year. The output would be exported.
Wood pellet is used as an alternative to coal as a source of energy in household and agriculture sector. A number of South Korean companies have previously invested to develop wood pellet production in Indonesian including PT Solar Park, PT Bio Energy Indoco, and PT Bara Indoco. (rei)
