REPUBLIKA.CO.ID, JAKARTA - Ministry of Industry targetted Indonesia to be world's largest manufactures of oleochemicals in 2020. Indonesian production capacity of oleochemicals reached 3.8 million tons per year. National oleochemical industry performance also shows an encouraging trend from year to year, as the market increasing and supported by government policy.

Oleochemical industry plays a role in processing of palm oil into high value-added chemical products, such as fatty acids, fatty alcohol, glycerine, methyl ester and its derivatives. As the largest producer of crude palm oil (CPO) in the world, Indonesia is likely to outnumber the world's industrial base oleochemicals in Malaysia, China, India, and the European Union. Currently, Indonesia is fourth largest oleochemical producer in the world.

Directorate General of Agro Industry at Ministry of Industry, Abdul Rochim said growth in non-oil and gas industry reached 6.69 percent in the first quarter 2013, compared with 6.40 percent in 2012.

"Growth in 2012 is also higher than economic growth which is only 6.02 percent," Rochim said on Wednesday. He added non-oil industry contributed 23.50 percent or 442.31 trillion IDR for gross domestic product (GDP) in the first quarter 2013.

Ministry of Industry targetted that oleochemical industry production capacity could reach four million tons this year. Indonesia should change the mindset to alter CPO production into many derivatives high value-added palm oil, including oleochemicals.

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