JAKARTA, Jan 18 (Reuters) - Japan's Kanematsu Corp. is considering building a biofuel plant using cassava as a feedstock in Indonesia, the industry minister said on Thursday.
The bioethanol plant will have the capacity to produce 100,000 litre bioethanol per day, Fahmi Idris told reporters.

"Kanematsu is interested to develop bioenergy in Indonesia. They are going to produce bioethanol from Cassava. We have invited local governments from cassava-growing areas," he said.

Idris said the company was looking for 50,000 hectares (123,600 acres) of land to be planted with cassava for feedstock.

Kanematsu, which has businesses ranges from energy to food, is constructing a cassava-based bioethanol plant in Thailand with output capacity of 200,000 litre per day, he said.

Idris did not elaborate on when the company's investment in Indonesia might start. ADVERTISEMENT
 
Indonesia is keen to tap its own crop resources to offset declining production from the OPEC member's oil fields, reducing its hefty oil subsidy bill in the process.

Indonesia's vast land resources and cheap labour have attracted several foreign companies to enter the Indonesian biofuel industry, including Malaysia's Golden Hope Plantations, Genting Bhd and Sime Darby Bhd and Singapore's Wilmar Holding Pte. Ltd.

The latest investment plan was from China oil major CNOOC, which early this week announced plans to join palm oil producer PT SMART Tbk and a Hong Kong energy firm to invest $5.5 billion in producing biofuel in Indonesia.