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Indonesian construction engineering company Protech Mitra Perkasa, also known by its stock symbol OASA, has announced plans for a US$50M bio-propylene glycol plant in Indonesia, the Jakarta Globe wrote.

Construction of the 30,000 tonnes/year facility on Java Island is due to begin next year, according to the 24 May report.

Protech Mitra Perkasa president-director Bobby Gafur Umar said the company’s entry into the chemical industry was in line with its commitment to the green industry.

“This also aligns with the government’s commitment to a green economy,” he said in a press statement on 23 May.

As Indonesia did not currently produce propylene glycol domestically, it was dependant on imports of the chemical, Umar said.

However, the country had “huge potential” as a bio-propylene glycol producer, he added.

“As we know, biodiesel is also an oleochemical industry that produces glycerol, [and it is] an industry that is growing at a rapid rate in Indonesia. So, there is an abundance of glycerol for bio-propylene glycol,” Umar said.

OASA said it would be working in partnership with Japanese general trading company Sojitz on the project.

As part of the agreement, Sojitz will supply crude glycerine and refined glycerine, while also distributing the bio-propylene glycol, according to the report.

According to its website, OASA is active in the oil and gas, energy and power, and telecommunications sectors.