04/01/2013 (Tempo Interactive) - Kuala Lumpur Kepong Bhd (KLK), Malaysia plantation giant, has projected a RM1.3-billion investment or around Rp4 trillion for the development of oleo-chemical business and oil palm plantation in Indonesia.The investment is applied to ensure the company long-term continuation and development, said KLK director Raja Muhammad Alias, as quoted from The Star daily on Tuesday, January 2.

KLK is currently building two factories in Central Kalimantan and Indonesia eastern region. Furthermore, the company other factories, two in Sumatra and one in Belitung, are expected to be in operation this year. Despite the uncertainty in global economics, the CEO is optimistic that the group performance will remain solid throughout 2013 because the Malaysian government has cut duty fees, which will reduce the pressure caused by stock pile-up. We believe that palm oil as a food commodity will prevail during hardships, said the CEO.

Raja is optimistic that the company will be able to boost growth by two digits for fresh fruit production and oil extraction quality improvement. KLK, according to Raja, will focus on improving added value such as methane capturing for energy; increase in production quality by using hexane and other solvents will also be carried on