Biofuel to Drive Indonesian Palm Oil Expansion

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Biofuel to Drive Indonesian Palm Oil Expansion

 

 

 

 

 

INDONESIA: January 27, 2006

 

JAKARTA - Indonesia's government plans to develop 3 million hectares of palm oil

plantations in the next five years to meet increasing demand for biofuel as an

alternative source of energy, the agriculture minister said on Wednesday.

 

Anton Apriyantono said two million hectares will be developed on the Kalimantan

side of Borneo island and the rest in other parts of Indonesia.

The government said last year it will develop a new palm oil plantation in

Kalimantan near the border with Malaysia. Covering an area of 1.8 million

hectares, it has the potential to be the world's biggest palm oil plantation.

" The government targets to develop three million hectares in new palm oil

plantations, " Apriyantono told reporters.

Biofuels are taking on renewed global importance as countries seek to

substitute the soaring price of conventional oil and also cut hazardous

emissions. Palm oil's emergence in the market comes decades after the

introduction of ethanol, made from sugarcane, and other additives.

Analysts say the biofuel push could be the biggest driver of growth in demand

for vegetable oils, especially as palm oil is the cheapest vegetable oil and the

easiest to convert into fuel.

Indonesia is the world's second-largest palm oil producer and exporter after

Malaysia.

 

REUTERS NEWS SERVICE

http://www.planetark.com/dailynewsstory.cfm/newsid/34707/story.htm

 

 

Michelle Desilets

BOS UK

www.savetheorangutan.org.uk

www.savetheorangutan.info

" Primates Helping Primates "

 

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