POSCO International to invest $862 mln in Indonesian palm oil business

POSCO International has announced a major investment of $862 million into its palm oil operations in Indonesia. The company has completed the development of a full value chain — from plantations to processing — strengthening its position in the global biofuel market.

On Wednesday, a completion ceremony was held in East Kalimantan for a palm oil refinery built as part of a joint venture between POSCO International and GS Caltex. The event was attended by POSCO International CEO Lee Kye-in, GS Caltex CEO Hur Sae-hong, and other key participants, highlighting the strategic importance of the project.

According to POSCO International, acquiring an Indonesian plantation company allowed the group to secure stable access to raw materials and enhance the competitiveness of its palm oil business. The new refinery is expected to significantly increase production capacity and operational efficiency.

GS Caltex will play a crucial role in supplying biofuel to the Korean market, using palm oil produced at the new facility. The partnership aims to meet the rising demand for low-carbon fuels and support Korea’s broader energy transition goals.

With the full value chain now in place, POSCO International plans to accelerate its expansion in the global bioenergy sector. The company emphasized that sustainable growth and environmental responsibility will remain central to its palm oil operations in Indonesia.

Tags: palm oil