The Indonesian government announced Wednesday the plan to build four bio-diesel fuel factories under the campaign to reduce reliance on oil fuel.

Minister of Industry Fahmi idris said the government has prepared a fund of 300 billion rupiah (33.3 million U.S. dollars) to set up the factories on Kalimantan and Sumatra islands.

The factories are expected to begin production of bio-diesel, made from vegetable oils and fats, in late this year, he told reporters here.

The combined production capacity is estimated at 6,000 tons a year.

The main materials for the bio-diesel industry are crude palm oil and castor oil.

Source: Xinhua