Procter & Gamble (NYSE:PG) is considering investing in Indonesia’s oleochemical sector, which includes chemicals derived from plant and animal fats, as part of its effort to find alternatives to petrochemicals amid rising commodity costs.
P&G is anticipating the need for 200,000 tonnes of fatty alcohol in the upcoming decade, according to the country’s industry minister MS Hidayat, who was cited by Reuters following a meeting on Monday with P&G officials at his office.
Indonesia is the world’s biggest producer of palm oil that is a feedstock for the oleochemical industry. Companies have begun shifting toward oleochemicals such as palm oil as an affordable alternative for petrochemicals for personal-care products.
The deal would be separate from P&G’s previously announced plan to invest $100 million in a manufacturing plant in the country.