Kotabaru with cooperative to operate biodiesel factory

Kotabaru, S Kalimantan (ANTARA) - The Kotabaru District Government, South Kalimantan, plans to partner with a cooperative to manage a biodiesel plant in Telagasari Village, Kelumpang Hilir Sub-District.

Kotabaru District Secretary Said Akhmad here Thursday said this step is a follow-up to the visit of Regent Sayed Jafar about a month ago.

"The regent just found out that there is a central aid factory that has been handed over to the district, but until now it has never been operated," he said.

According to Said, factory equipment is still maintained and functioning when it was last tested. The regent then instructed that the problems that hampered the operation be completed so that these assets would not only become monuments.

Moreover, many independent oil palm farmers have difficulty selling their products to companies for reasons of overproduction. There are buyers outside, but high transportation costs make farmers' profits thin. The existence of a biodiesel plant can be a solution.

This factory is a project of the Ministry of Research and Technology which was built in 2007 to produce alternative fuels from crude palm oil.

However, since the construction was completed in 2010 until now the factory has never been operated, even though there had been cooperation with third parties several years ago.

Now, the Kotabaru District Government intends to empower cooperatives in local villages that are well-established and have the capital to run the plant. The cooperative is chosen because it is considered to be more prosperous for the community, besides the regional government could still be involved in conducting guidance.

"We are trying to cooperate with the Gajah Mada Cooperative and they welcomed it. The MoU will be made this year, then gradually because we needs to train personnel, including I ask for the formation of management," Said said.