U.S. investor to build methanol plant in Bojonegoro

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Bahlil Lahadalia
Investment Minister Bahlil Lahadalia. (Source: Cabinet Secretariat)

Jakarta, IO – Investment Minister/Investment Coordinating Board (BKPM) chief Bahlil Lahadalia said after nickel, the government is now targeting gas and food downstream industry. This plan has also been discussed in a limited Cabinet meeting with President Joko Widodo (Jokowi).

“Nickel (downstreaming) has been successful. Now the president directed us to expand to other sectors, one being gas,” Bahlil said, reported Detik on Thursday (10/11).

One of the steps being prepared is to build a methanol plant. Bahlil said that 80 percent of Indonesia’s methanol still comes from imports. He revealed that there is already a U.S. investor interested in investing in this sector. The plant will be built in Bojonegoro, East Java.

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In addition, there is plan to build fertilizer and ammonia plants in Fakfak and Bintuni, West Papua. With regard to food industry downstreaming, Bahlil said the conflict between Russia and Ukraine has created a food and energy crisis. This, in his view, is a momentum.

“There is large potential in food downstreaming. The investment value may not be too large but the market share is,” he said. (rr)