Indonesia and Germany expands investment cooperation in palm oil industry

 
 
 
 
 
 
 
 
 
 

On 28 July 2010, PT Perkebunan Nusantara III, PT Nusantara Bio Energy and Ferrostaal AG of Germany signed a Memorandum of Understanding (MoU) on the expansion of cooperation on investment in the palm oil industry including the integration of bio diesel, surfactant, beta carotene and fatty alcohol. The MoU was signed by Amri Siregar, CEO of PT Perkebunan Nusantara III, Sabry Basyah, CEO of PT Nusantara Bio Energy, and Stephan Reimelt, Member of the Board of Ferrostaal AG. The ceremony was witnessed by Eddy Pratomo, Ambassador of the Republic of Indonesia to the Federal Republic of Germany, and by other representatives of the involved enterprises.

 

The project to be located at Sei Mangkei, North Sumatra, will be initiated by a feasibility study evaluating production and processing technology, presentation of technological concept as well as the financing model and economic assessment for the submitted concept. The project will be crowned by an executive joint operation or a joint venture company.

 

Ambassador Pratomo, while outlining the current state of the palm oil industry in Indonesia, also pointed out to several concerns raised, including those related to environmental issues. He stated that the signing of the MoU is significant not only for the development of investment, but also shows that the industry does not contradict with environmental issues which is a major concern in the present world. Moreover, cooperation in the palm oil industry with Ferrostaal AG, a renowned German enterprise active in more than 60 countries as general contractor, is conducive to addressing the environment issue.