Oleochemistry cluster in Dumai...

The Indonesian government officially announce agriculture-based industry cluster and Oleochemical (Oleochemistry) in the region Dumai, Riau Province.

The area is one of the three agriculture-based industry cluster and Oleochemistry developed in the country. The other two are placed in Kuala ENOK, Riau and East Kalimantan.

Coordinating Minister Hatta Rajasa said the economic cluster development is part of the declaration program sixth national economic corridor defined by unique potential of each region.

"As part of a special economic zone, agriculture-based industry clusters and Oleochemistry in Riau will become one mainstay to enhance national economic competitiveness," he said.

He promised the government will provide fiscal incentives for companies to enter the downstream sector of the oil palm industry.

On that occasion, Minister of Industry, MS Hidayat said the pattern of palm oil exports that had been dominated by crude palm oil has time changed to export of processed products.

In this way, value added and foreign exchange earned from Indonesia palm oil-based products can be improved again, he added.

"Palm oil will become the new frontier of national economies," he said.

Hidayat expressed Indonesia is the largest supplier of palm oil in world markets. Therefore, it was time Indonesia has a strong industrial structure in the palm oil sector.

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