Sinarmas Cepsa (SCPL) is expanding production of bio-based chemicals at its site in Lubuk Gaung, Indonesia.

A 50/50 joint venture of agribusiness giant Golden Agri- Resources (GAR) and Spanish oil and gas firm Cepsa, SCPL said the increase in production was expected to advance the company’s growth strategy, contribute to solving environmental challenges, including climate change, and support sustainable farming practices in Indonesia.

“Sustainably-sourced, bio-based alternatives are key requirements for our customers and the markets we serve,” SCPL CEO Kung Chee Wan said on 8 November.

Singapore-headquartered SCPL operates a fatty alcohol plant in Indonesia and produces surfactants in Germany for the European market.

GAR’s primary activities in Indonesia include cultivating and harvesting oil palm; processing fresh fruit bunches into crude palm oil (CPO) and palm kernel oil (PKO); and refining CPO into products such as cooking oil, margarine, shortening, biodiesel and oleochemicals; in addition to selling palm products globally.

GAR also operates complementary businesses including soyabean-based products in China, sunflower-based products in India and sugar operations.

In addition to its global oil and gas activities, Cepsa manufactures products from plant-based raw materials and is active in the renewable energy sector.