15/11/05 Medan  (Antara) -  PTPN-III, one of Indonesia's state-owned plantation companies, is currently making preparation to build an oleo chemical factory in cooperation with an Indian investor, company's managing director Akmaluddin Hasibuan said here Saturday.

The Indian investor is still conducting a survey in Belawan (North Sumatra), Dumai (Riau) and Batam to seek an appropriate location for the construction of the factory. But Akmaluddin cited the possibility of choosing Batam as the location of the plant because of various reasons.

The construction of the factory will be started soon when the survey has finished and the location has been decided since the funds for the project have been available, he said, adding that there is no problem in the provision of the funds by the foreign partner.

The Medan-based plantation company will contribute only 30% of the investment, while the remaining 70% will be provided by the Indian partner. Actually, the government hopes that PTPN-III will provide 30% of the total investment in the project, but because of various reasons, including the determination to attract foreign investors, the company has decided to contribute 30%.

The expansion of the company's business to the processing industry is aimed at raising its income and profit, which has so far only relied on the export of unprocessed products as raw materials.

PTPN-III, which has begun entering the processing industry by operating a rubber processing plant, will continue its step by operating an oleo chemical factory, which will further process palm oil. The management of PTPN-III believes that the prospect of the palm oil processing industry is bright.