India’s VVF Limited plans to open up a palm oil-based oleochemical production facility in Deli Serdang, Medan, North Sumatra, a local official said.
Aryan Wargadalam, director for plantation and forest products industry at the Ministry of Industry, said on Friday that he received confirmation over the investment plan during a recent meeting with the management of the Indian investor known as The Vegetable Vitamin Food Company Ltd.
Aryan said as quoted by Kontan that VVF plans to develop the project, to be locate din the Medan II Industrial Estate (KIM II) in phases with total investment plan of US$300 million. The first phase of investment is expected to reach $100 million in the hope that production could begin in 2013 if construction can start this year.
VVF is currently in the process of obtaining the necessary permit and completing the administrative requirements.
The plan by VVF to investment in Indonesia’s downstream palm oil industry comes as the government is pushing for investment in the sector. A number of major local players and foreign giants have also announced investment plans in the industry. Among them is the Sinar Mas Group with investment plan of Rp 2.3 trillion, PT Permata Hijau Rp 2 trillion, Wilmar Group US$900 million, Domba Mas $180 million, and PTPN III Rp 3 trillion. Unilever and Germany’s Ferrostall AG also plan to invest in the Sei Mengkei downstream palm oil compound in North Sumatra. (rei)