Jakarta. Protech Mitra Perkasa, also known by its ticker symbol OASA, recently announced its plans to invest $50 million to build Indonesia’s first bio propylene glycol plant.
OASA will build the bio propylene glycol plant on Java island, with construction works expected to start in 2023. The plant, once built, will be able to produce about 30,000 tons of bio propylene glycol a year.
Bio propylene glycol is widely used across many industries such as pharmaceuticals, cosmetics, food, and chemicals. According to Protech Mitra Perkasa president-director Bobby Gafur Umar, the company’s entry into the chemical industry is in line with its commitment to the green industry.
“This also aligns with the government’s commitment to a green economy,” Bobby said in a press statement on Monday.
Indonesia entirely imports its fossil-based propylene glycol, as there is still no domestic production of the said chemical, according to Bobby.
Glycerol —a byproduct of biodiesel production— is the main ingredient of bio propylene glycol. Bobby went on to say that Indonesia actually has a huge potential as a bio propylene glycol producer.
“As we know, biodiesel is also an oleochemical industry that produces glycerol, [and it is] an industry that is growing at a very rapid rate in Indonesia. So there is an abundance of glycerol for bio propylene glycol,” Bobby said.
OASA will also work with Japanese general trading company Sojitz.
“Sojitz will be one of our partners, particularly as a distributor, because of its experience and a vast network in selling this kind of product. They are also ready to be the offtaker,” Bobby added.
On Monday, OASA and Sojitz inked a memorandum of understanding on this cooperation. Sojitz will supply crude glycerin and refined glycerin, while also distributing the bio propylene glycol.