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View all search resultsRI needs 4 million kiloliters ethanol for E20 biofuel push
Experts have warned that the bioethanol push demands rigorous scrutiny, citing potentially severe trade-offs, as producing ethanol from crops could disrupt food security, trigger land conflicts and incentivize deforestation.
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Agriculure Minister Andi Amran Sulaiman fills B50 biodiesel fuel on Aug. 18, 2024 into a road-test vehicle during a soft launch of the use of B50 at PT Jhonlin Agro Raya biodiesel factory in Batulicin, Tanah Bumbu regency, South Kalimantan. (Courtesy of Agriculture Ministry/-)
T
he government has stated that the mandate to implement 20 percent bioethanol blend (E20) in 2028 would require around 4 million kiloliters (kl) of ethanol each year.
Energy and Mineral Resources Minister Bahlil Lahadalia said that national gasoline demand currently stood at around 40 million kl per year. However, domestic refinery output currently meets only 14.3 million kl, forcing Indonesia to import nearly 25 million kl annually.
Speaking at the National Workshop of the Indonesian Science, Technology, and Industry Convention in Jakarta on Saturday, Bahlil said the supply gap is expected to narrow once the Balikpapan refinery expansion is completed in January. The refinery will add 5.5 million kl of production capacity, reducing import needs to about 20 million kl per year.
Read also: Govt to deploy mandatory E5 bioethanol, B50 biodiesel program in July
To address the remaining shortfall, the ministry has mapped out the E20 bioethanol mandate, drawing inspiration from the palm oil-based biodiesel program, which progressively scaled up from B10 to B50.
“We will produce ethanol using raw materials from sugarcane, cassava and corn,” Bahlil said, as quoted in a statement on Saturday, adding that the government will act as “the primary off-taker to guarantee absorption of ethanol produced by farmers and upstream businesses.”
In April, Japanese automaker Toyota and state-owned energy company Pertamina stated that they are looking to start the construction of a bioethanol plant in the second half of this year to achieve production in 2028. The project would be developed via a joint venture involving PT Pertamina New & Renewable Energy (NRE) and Toyota Tsusho Corporation.
