Korean car and technology firms Hyundai and LG are planning to build biodiesel plants in the province of West Kalimantan in Indonesia as part of the Indonesian government’s efforts to boost its biodiesel mandate to 20% (B20).

The companies would apply environmentally friendly technology to transform waste oil palm fruit bunches into biodiesel, reported The Jakarta Post on 10 September.

“We welcome the plan. The opening of the downstream business is in line with the increasing demand for biodiesel,” said West Kalimantan Governor Sutarmidji.

Sutarmidji said he would fast-track the issue of necessary permits for the two plants, which would be constructed in Kubu Raya regency due to its close proximity to an airport and a seaport.

“As long as the investment is also good for the people and there is transparency, there is no reason for us not to immediately issue the permits,” said Sutarmidji.