RNI to build CPO processing factory in S. Sumatra

JAKARTA. In order to increase its crude palm oil (CPO) production. state-owned agribusiness firm PT Rajawali Nusantara Indonesia (RNI) is set to construct, via its subsidiary PT Perkebunan Mitra Ogan, a new CPO factory in South Sumatra this year, with an investment of Rp 100 billion (US$8.36 million).

The new factory, which will be located in Musi Banyuasin regency, is expected to commence operations in November of next year.

“With the operation of our third CPO factory, we will be able to increase our CPO production from 90 million tons per hour to 120 million tons per hour,” RNI president director Ismed Hasan Putro said on Tuesday.

Perkebunan Mitra Ogan currently operates two factories in the province — the PKS-I and the PKS-II — which have respective production capacities of 60 million tons and 30 million tons of CPO per hour.