Indonesia to Develop Downstream Palm Oil Sector with FGV’s Help
Indonesia will develop a special economic zone for down stream palm oil processing and Felda Venture Holdings (FGV) will lead the efforts, according to recent reports. The project is in the planning stage, with meetings with the Indonesian government to decide on a location, size of investment and other details taking place on Friday. Malaysia is expected to contribute expertise in research and development through FGV’s participation and set up the special zone through an eventual joint venture with Indonesia’s Rajawali Group, says Deputy Minister Datuk Razali Ibrahim.
There are five sites all with a port and airport – Balikpapan, Surabaya, Papua, Jayapura and Dumai – being evaluated for the project, which is expected to be finished in 18 months.
Indonesia and Malaysia, together, account for 85% of global palm oil production and completion of this project would ensure Indonesia as the world’s biggest palm oil hub.