Indonesia's largest listed energy firm, Medco Energi Internasional Tbk, plans to start building a $34.13 million ethanol production plant next year.

The plant would have annual capacity of 60,000 kilolitres and construction would start in the third quarter of 2006, Medco said in a statement.
The plant will enable Medco to tap into the alternative energy market from its traditional fossil fuel-based products.
"The plant will produce industry grade ethanol starting the end of the third quarter in 2007. The product will be absorbed by Singapore and Japan," Medco Energi said.
Medco said the investment would be made by its wholly owned subsidiary, PT Medco Ethanol Indonesia. The unit would take an 85 per cent stake in the ethanol plant, and the rest by unlisted Indonesian company PT Trada Bioenergy Indonesia.