JAKARTA. PT Mitra Investindo Tbk (MITI) has established a joint venture (JV) along with Interra Resources Limited (IRL) and PT Prima Asset Lestari (PAL).

This joint venture is established to carry out business in the new and renewable energy sector, particularly biomass. In addition, the JV will be tasked to build a wood pellet factory in Sumatra with an investment worth USD 4.8 million.

In this JV establishment, MITI and PAL share 60% of the shares, while the remaining 40% goes to IRL.

“This JV plans to build and operate wood pellet factory in Sumatra, targeting the construction to begin in early 2024,” the management of MITI mentioned in its official statement.

For the record, wood pellet is one of fuel of biomass green fuel. This fuel is believed to have quite a wide market potential amidst the global campaign to reduce carbon emission. (KR/ZH)