Friday, 11 July, 2008 | 19:19 WIB
TEMPO Interactive, Jakarta:The Indonesian Bio-Fuel Association secretary-general, Paulus Tjakrawan said increasing the capacity will depend on how the bio-fuel market develops. Hence, the government will start requiring industries to use 2.5 percent bio-fuel in their production process.
The producers prefer exporting bio-fuel raw material, such as crude palm oil (CPO). “The price of CPO is very attractiveinteresting,” said Paulus.
Bio-ethanol-based fuel also has a low production capacity, about 130.000 liters per year. Its production is managed by three producers, using molasses as their raw material.
Paulus said the government’s effort to push industries into using bio-fuel was a positive policy, even though it is going slowly. In other countries, governments support bio-fuel development due to the limited supply of the raw materials and their costly price.
Using bio-fuel in industries can also help economize because for the last two months their prices have been below the price of diesel fuel. Industrial diesel is Rp 12.200 per liter while bio-fuel is Rp 10.670 per liter (tax included). Accordingly, industries do not need to adjust their machines when using bio-fuel in their production.
According to Industry Department secretary-general, Agus Tjahajana, the government and related agencies are still reviewing regulations on bio-fuel usage. “We still need to stabilize supplies and create the business mechanism,” he said. The regulation is scheduled to be implemented on September 2009.