Jakarta (Antara Bali) - A United States-based company producing special chemical substances and technology Celanese is to build an ethanol factory worth US$2.2-2.5 billion in Indonesia, the Indonesian industry ministry's Director of Upstream Chemical Industry Tony Tanduk said here on Friday.
"The factory will be located in either Palembang (South Sumatra Province) or Bontang (East Kalimantan). It will cover an area of around 150-200 hectares," Tony said.
He explained the new factory will make use of Indonesian coal to be processed into ethanol and methanol which are useful for fuel compound and chemical industry.
"The factory will need 4-5 million ton of coal per year to produce 1 to 1.1 million ton of ethanol per year," he added.
Meanwhile Industry Minister MS Hidayat said the government will give tax holiday to Celanese for establishing its factory in Indonesia. (IGT)
