Long before the term ‘bio-fuels’ became commonplace, the leadership of Medco Group realized the future of energy, and began the process of diversifying into renewable sources of energy.
Indonesia, blessed with a year-long growing season, sufficient rain and good economies of scale, a 300 km2 palm oil concession was acquired by Medco Group in 1993. The 30,000 hectare concession on the island of Kalimantan is under the control of three subsidiaries: PT Meta Epsi Agro, PT Ciptatani Kumai Sejahtera, and PT Sabut Mas Abadi. Medco Group’s management plans longterm investment in palm oil that will provide both long-term stability in energy supplies and provide local markets with valuable cooking oil.
As can be seen almost daily in current worldwide headlines, bio-fuel is fast becoming a profitable and sustainable complement to fossil fuel production, validating in strong measure Medco Group’s foresight in this area. However, the company feels that, with a growing population, a balanced approach to palm oil processing is in the overall interest of Indonesia. Accordingly, Medco Group has invested in processing facilities for palm oil both for consumer and industrial food consumption markets. This has a dual effect of strengthening its position in the food industry and helping to develop the local economies surrounding its land concession.
Medco Group has also initiated a pilot plant project to produce bio-diesel from crude palm oil (CPO), which is then used in vehicles operated by the estate. In further advancement, as an evidence for its environmental concern, Medco Group is currently developing an installation waste processing facility that will reduce the emission of methane gases from the treatment process of solid and liquid wastes from the CPO mill.
As a native Indonesian company with global perspectives and reach, Medco Group is a key element of the global energy industry’s strive for solutions to reliance on single sourcing. Harnessing palm oil as part of its energy production strategy is one of the forward thinking ideas through which the company is seeking sustainable profit and sound environmental policies.
Empowering the local economy with palm oil processing is empowering Medco Group to continue on its path of entrepreneurship, partnership, financial strength and corporate social responsibility. Hopeful that its biofuels will become the backbone of its longterm energy production, Medco Group’s management is open to assessing those agricultural products that will maximize energy contribution, local benefits, and a sustainable positive impact to corporate value.