Industry Ministry proposes Berau as palm oil development area

Thus conveyed by the Director General of Agro Industry of Ministry of Industry Panggah Susanto after accompanying Minister of Industry Airlangga Hartarto to meet the President Director of Berau Nusantara Kawasan Industri (BNKI) Rauf Purnama.

"We do want to have one in Kaltim, originally Pupuk Kaltim (Bontang), but the land was still not ready. Now, in Berau, it is ready," said Panggah in Jakarta, Thursday.

He conveyed, Berau Industrial Area has fairly ready facilities because it has a port, availability of water, electricity, as well as the operation of a pulp and paper industry.

Meanwhile, the location in Bontang Industrial Zone is still a forest land, which is considered not ready.

"Seeing the condition, its development seems to still take a long time. So, Berau is the most ready," said Panggah.

The Indonesian and Malaysian Governments are serious about encouraging the development of palm oil processing industry capable of increasing product added value and being environmentally friendly. Moreover, Indonesia and Malaysia are the largest producers of palm oil in the world.

For that, the Indonesian and Malaysian Governments have initiated a cooperation in the economic sector by establishing a palm oil producing countries unity agency (Council Palm Oil Producing Countries/CPOPC).

This agency will focus on creating operational standardization of palm oil industry, from upstream to downstream. Starting from creating the same standard for all palm oil producers, either in the plantation or the processing industry, until palm oil farmer development, stock management, and building of POGEZ.

Regarding POGEZ development, the two countries have proposed three locations each.

Indonesia wants the development in Dumai Industrial Area, Riau; Berau Industrial Area, East Kalimantan; and Sei Mangkei Industrial Area, North Sumatera.

As for Malaysia, in Lahad Datu, Bintulu, and Tanjung Manis.

Editor: Heppy Ratna

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