Minister of Industry: Palm Industry Must Strengthen European Network

INDUSTRY.co.id - Dumai, the Ministry of Industry appreciated the inauguration of the first oleochemical plant in Indonesia owned by Sinar Mas Cepsa located in Dumai, Riau Islands.

As is known, Sinar Mas Cepsa is a joint venture between Sinar Mas Agribusiness and Food with Cepsa, a Spanish energy company.

"The cooperation is not only seen from the business side, but it can be as an export door for Indonesian palm to Europe," said Minister of Industry, Airlangga Hartarto when inaugurated the oleochemical plant of PT Sinar Mas Cepsa in Dumai, Riau Islands, Thursday (14/9 / 2017).

He added that these networks together with Europe is very important, in addition to Palm oil Indonesia is often connoted with the ugly. "But with this cooperation we hope to bring good name," he said.

Furthermore, Airlangga revealed that the palm oil industry is a strength for the country and very important for Indonesia. In addition to one of Indonesia's main exports, the palm oil industry also absorb labor to reach 21 million people either directly or indirectly. "The contribution of palm oil also reached US $ 20 billion," he said.

On the same occasion, Franky O. Widjaja, Chairman of Sinar Mas Agribusiness and Food, said the joint venture was created with a vision to become a global vegetable based fatty alcohol producer and its leading global derivatives and with sustainable supply of raw materials.

"The vertical integration of Sinar Mas Cepsa and the launch of the plant in Dumai is an important step we take to achieve this vision, through which we can increase added value for palm oil derivatives products and continue to create jobs in Indonesia," Franky said.

The two-year-old plant will produce fatty alcohols from sustainable palm kernel oil as the main ingredient for daily-use products such as household cleaning and personal care products.

Meanwhile, Deputy CEO Sinarmas Cepsa, José Maria Solana added, this is the first time Cepsa produces non-oil, but plant-based chemicals, new locations, new businesses and new markets.

"The Dumai plant has an annual production capacity of 160,000 metric tons of fatty alcohol per year," he added

According to Jose, sales of vegetable fatty alcohols are increasingly in demand as raw materials for personal care products and liquid detergents. "The main focus of sales from the Dumai plant is the markets in Asia," explained Jose.

This factory directly provides employment for 300 Indonesian workers. The Dumai plant has fully operated independently. In addition, the plant is capable of generating its own electricity, processing waste and managing its own logistics.

"Dumai plant has a strategic location, adjacent to Lubuk Gaung oil refinery owned by Sinar Mas Agribusiness and Food which supplies palm kernel oil for the plant," he concluded.