REPUBLIKA.CO.ID, JAKARTA - Celanes Corporation, a chemical company from the United States, will build ethanol plants in Indonesia worth 2.5 billion USD. The plants will be built in Palembang (South Sumatra) and Bontang (East Kalimantan).
"Each factories need 100 to 200 hectares of land. The process will take two to three years," Director of Basic Chemical Industry at the Ministry of Industry, Tony Tanduk, said on Saturday. The project is to turn coal gasification into methanol and ethanol processing.
Celanese planned to collaborate with Pertamina as a state owned oil and gas company, to produce ethanol up to 1.1 million tons per year. Each factory requires coal more than five million tons per year.
The development of synthetic fuel ethanol projects with cutting-edge technology will produce plastic raw materials, fuel mix and fuel. Celanese will realize its investment this year and Indonesian government will provide tax incentives such as tax holiday.
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