LDC

Home

JAKARTA, Indonesia, 6th April 2016 – Louis Dreyfus Company (LDC) announced today the launch of a biodiesel plant in Indonesia, the Group’s first in Asia and fifth to open globally, following the construction of biodiesel plants in Argentina, Germany and the U.S.

Located in Lampung province in the southern part of Sumatra, the biodiesel plant lies adjacent to LDC’s integrated crude palm oil refinery in Lampung, which has been operational since 2014. The two state-of-the-art complexes occupy a compound spanning 15 000 square meters, employing more than 100 employees.

Drawing palm products from the neighboring oil refinery and utilizing world-class transesterification technology, the biodiesel plant has an annual production capacity of up to 420 000 tons of Palm Methyl Ester (PME) and 50 000 tons of crude glycerin.

“The launch of our biodiesel plant is a timely and supportive response as the B-20 biodiesel blending mandates come into force in Indonesia this year,” commented Imran Nasrullah, CEO of LDC in Indonesia. “With the depth of our technical know-how as well as advanced research and quality-testing capabilities, we are fully equipped to produce PME of the highest standards to supply the growing domestic demand through strategic customer partnerships.”
Operating a bulking station and port nearby with a storage capacity of 107 000 tons and 6 pipelines that are able to pump products from the oil refinery and biodiesel plant at a capacity of 350 tons per hour, LDC is also in a strong position to meet international export market needs.

Elsewhere in Indonesia, the Group owns and operates another oil refinery complex with a bulking terminal and a deep port through a joint venture in Balikpapan, East Kalimantan. With its two oil refineries, logistical assets and now the addition of a biodiesel plant, Louis Dreyfus Company is reaffirming its presence as a major downstream player in Indonesia’s palm industry.“

Being present in Indonesia’s biodiesel space is very important and relevant for LDC,” says Rubens Marques, Country Head of Palm and Biofuels, “Not only does it mark an expansion of our global biodiesel portfolio, but it also represents a natural vertical integration of our business in Indonesia, thereby enabling us to maximize operational synergies along the supply chain.”“

The use of biodiesel as a viable source of renewable energy is in line with Indonesia’s efforts to reach self-sufficiency in energy, while reducing greenhouse gas emissions and actively promoting the long-term growth of the country’s vital palm sector,” adds Nasrullah. “Having established operations in Indonesia since 2001 with a long-term view of expanding our presence steadily, we are proud to support the country’s development and look forward to continuing to contribute towards Indonesia’s economic progress.”

Upholding a firm commitment to sustainable sourcing, LDC fulfills international sustainability standards via the RSPO (Roundtable on Sustainable Palm Oil) with the RSPO certification of its two oil refineries in Lampung and Balikpapan. In addition, its palm oil operations comply with the requirements of RED (Renewable Energy Directive) and the ISCC EU (International Sustainability and Carbon Certification). The Group has also worked with The Forest Trust (TFT) to conduct a comprehensive review of its supply chain to ensure a higher level of supplier accountability and product traceability.

Parties interested in learning more about the biodiesel plant can contact Louis Dreyfus Company in Jakarta at +62 21 570 6300.

> Back to Indonesia homepage

© 2021 Louis Dreyfus Company