PT ORI Starts 1,000-Tonne-a-Day Biofuel Project in Siak

Siak — PT Oriental Resources Indonesia has started construction of an IDR 1.6 trillion integrated palm oil downstream complex at the Tanjung Buton Industrial Estate in Siak, Riau. The domestic investment project includes a refinery, an enzymatic biofuel facility, a palm oil mill, storage tanks and a dedicated terminal.

The groundbreaking took place on 8 October 2026. Siak Regent Afni Zulkifli said the investment would be delivered in two stages, comprising an initial IDR 800 billion development and a further IDR 800 billion expansion.

Biofuel capacity planned at 1,000 tonnes per day

According to information reported by ANTARA and Sawit Indonesia, PT ORI plans an enzymatic biofuel facility with a capacity of 1,000 tonnes per day. The development also includes a refinery plant designed for 1,100 tonnes per day and a palm oil mill with a processing capacity of 45 tonnes per hour.

Other major assets include storage tanks and a dedicated jetty or terminal. Supporting facilities are planned for water treatment, biogas, wastewater treatment, maintenance workshops and warehousing.

Initial site work has begun with land filling, site preparation and foundation piling. These activities indicate that the project has moved from an investment announcement into physical development, although completion and commercial operations will depend on the subsequent construction programme.

Project linked to CPO downstreaming and B50

Afni described PT ORI as the estate's first palm oil downstream investment, including facilities linked to Indonesia's B50 requirements. The local government expects CPO processing and export activities to be handled through the Tanjung Buton Industrial Estate.

The announced biofuel capacity does not automatically mean output has entered Indonesia's biodiesel supply chain. To support the mandate, the facilities must be completed, meet applicable quality standards, secure feedstock and connect with the prevailing procurement and distribution system.

If the full plan is realised, combining a mill, refinery, storage and terminal in one industrial estate could shorten movements of feedstock and finished products. Access to port infrastructure could also support shipments of CPO and downstream products, although the actual logistics impact can only be measured once operations begin.

A potential addition to Riau's biofuel industrial base

The investment adds to projects seeking to integrate palm oil production, downstream processing, energy and logistics in one location. Additional production capacity is relevant to Indonesia's biodiesel programme because biofuel demand rises as the mandatory blending rate increases.

The next indicators to monitor are realised investment, construction progress, licensing, effective operating capacity and the types of biofuel produced. Media Biodiesel's biodiesel producers and biodiesel regulations pages provide context for comparing the project with the national programme.