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View all search resultsPertamina seeks excise exemption for ethanol import to boost biofuel rollout
Existing bioethanol supplies can cover only about 3 percent of national demand for biofuel applications, according to the Investment and Downstream Ministry data.
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Pertamina Technology and Innovation Senior Vice President Oki Muraza fills a car with biofuel on July 24, 2024, at the Pertamina and Toyota Sorghum Bioethanol Prime Filling event held at the Indonesia Convention Exhibition in Tangerang City, Banten.
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ertamina Patra Niaga, the commercial and trading arm of state-owned energy giant Pertamina, is seeking an excise exemption for fuel-grade ethanol import as the government prepares to mandate ethanol-blended gasoline within the next two years.
The state fuel retailer said it would help keep ethanol-blended gasoline economical while the government rolls out its mandatory blending roadmap.
"Together with the Energy and Mineral Resources Ministry and other agencies, we are seeking support for an excise exemption for fuel-based ethanol," Pertamina Patra Niaga retail marketing director Eko Ricky Susanto said on Friday, as quoted by Kompas.com.
Read also: Indonesia rolls out B50 biodiesel mandate, lifting palm oil demand
Current excise rules treat fuel-grade ethanol the same as ethanol used by the food and beverage industries, making an exemption a key part of Pertamina Patra Niaga's preparations for wider blending, Eko said.
“Because this is for the energy transition and energy shifting, we have proposed to the ministry that it be supported with an excise exemption, and this is currently being processed,” he said.
Pertamina is meanwhile preparing terminals, storage tanks and blending systems to handle bioethanol, with initial infrastructure focusing on Java where domestic production is currently centered in Mojokerto, East Java.
