Ferrostal AG, a German company and PT Perkebunan Nusantara III and PT Nusantara Bio Energy have signed up an MOU to develop integrated investment cooperation in the coconut palm industry consisting of bio diesel, surfactant, beta-carotene and fatty alcohol. The signing of the agreement was done yesterday (28/7) at the Indonesian Embassy in Berlin by Amri Siregar, President Director of PTP Nusantara III, Prof.Stephan Reimelt from the Ferrostaal AG’s Executive Board and Sabri Basyah, President Director of PT Nusantara Bio Energy.
The initial implementation of the MOU will be in the form of joint feasibility study to be followed by the establishment of an executive joint operation or a joint venture company.
The project will be located in Sei Mangkei, North Sumatera, with the initial projected areal of 104 hectares, which eventually may be expanded to 3.000 hectares. The upcoming feasibility study will cover technology evaluation and production process, presentation on the technology concept and financing model and economic evaluation on the proposed concept.
The Indonesian Ambassador, Eddy Pratomo, who attended the signing ceremony, described the current condition of the coconut palm industry with all the challenges specifically the ones related to environmental issues.
He also noted that the signing of this agreement is very important since it is more than investment development, but it is also an indication that the industries developed in Indonesia do not go against the environmental issues which currently is in the rage.
Especially since the development of this upcoming project will be conducted by a big partner from a developed country (Germany) which is quite concerned with the environment.
Amri Siregar explained the excellent prospect of this joint venture. In addition to increasing the added value of palm oil products, the project will also raise the farmer’s standard of living and at the same time ward off the doubts of certain the parties abroad, especially in Germany, regarding the impact of the project on the environmental.
Ferrostaal AG of Germany is a large company that has invested in over 60 countries with a core competences as general contractor in various sectors such as petrochemical industry, diesel and gas, power energy, solar energy, pulp and paper, bio fuels and others (source: Indonesian Embassy, Berlin).