Japanese investor to build CCO factory in Banyuasin Regency

Banyuasin Regional Secretary Erwin Ibrahim led discussions on the follow-up to the construction of a crude coconut oil (CCO) factory. A Japanese investor plan to use coconuts as a raw material for aviation turbine (avtur) biofuel or bioavtur, with an investment value reaching hundreds of billions of Rupiah.

"The investment value of this CCO factory is Rp 600 billion, with thousands of workers expected to be employed. We also discussed the factory construction targets, operations, and the factory's daily coconut needs," said Erwin on Nov. 13, 2025.

The employment target was conveyed by Tanaka, the investor for the project, who also divulged the year that the factory is planned to start operating.

"From the discussion, the factory is targeted to begin operations in February 2027, and the investor stated that it will require 1,000 workers in the initial phase," he explained.

The Banyuasin Regency Government welcomed the proposed investment. Besides creating a significant number of jobs, its development will also improve local infrastructure and economic growth.

"This also includes the infrastructure that will be built for access [to the factory] and the opportunities for economic growth in Banyuasin and South Sumatra [in general]," said Erwin.

"The Banyuasin Regency Government welcomes the Japanese investor. We hope this will open up opportunities for Banyuasin's young people to work and pursue careers in coconut processing," he continued.

Erwin added that the factory's initial daily coconut demand is quite large.

"The initial daily coconut demand is 500 tons, which will later be converted into CCO, the raw material for [bio]avtur," he said.

Also present at the discussion were the Banyuasin Plantation and Livestock Office Head Roni Utama, Investment and Integrated Services Office (DPMPTSP) Service Head Rayan Nurdinsyah, community leaders, village heads, and other relevant parties.