National Sago Prima may switch from food to biofuel production in Indonesia

In Indonesia, Sampoerna Agro, a palm oil plantation company, announced that it is considering the conversion of its  PT National Sago Prima, a sago producer in which it holds a 91.85 percent stake, into a biodiesel producer. National Sago Prima has planted 32,000 acres (13,000 hectares) of sago with licenses to plant another 20,000 acres (8,000 hectares).

Analysts have questioned the investment in National Sago Prima because Sampoerna Agro does not have  experience in the production of staple foods, and sago plants take 10 years to reach maturity, as opposed to four for oil palm.

More on the story.

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Tags: biofuels, Indonesia

Category: International