Indonesian state planter PT Agrinas Palma Nusantara plans to open biodiesel and bioethanol plants to support the government's renewable energy agenda, while adding soybean and cassava to its portfolio, its chief executive said on Monday.
Agrinas will reactivate by year-end an existing plant to produce diesel fuel from palm oil, chief executive officer Mohammad Abdul Ghani told a parliamentary committee.
The plant will have 600,000 tons capacity by 2030.
Agrinas will build a bioethanol plant with 185,000 kilolitres capacity, Ghani added.
It was not immediately clear how much investment was needed for the two plants.
Agrinas has also been instructed to expand the size of its palm oil plantation by 400,000 hectares (988,422 acres) by 2030, Ghani said.
It is expected to develop 400,000 hectares of soy bean plantations and 300,000 hectares of cassava plantation by 2030.
A government task force has handed over to Agrinas a total of 4.1 million hectares (10.1 million acres) of land seized from companies it said had violated forest utilisation rules.
Of the total area, around 730,000 hectares were planted with oil palm trees currently, Ghani said.
Agrinas is at the final stage of obtaining legal documents on ownership of plantations under its control, Ghani said. Presently, the firm is only a caretaker.