Biofuel trading scheme awaits regulations<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The full-scale development of biofuels could start sooner rather
\nthan later with a presidential instruction on trading systems
\ncurrently being prepared, a ministry spokesman says.<\/p>\n
\"Business people are now waiting for the trading regulations.
\nWe have completed the draft and it should be made official in the
\nnext couple of months,\" State Minister of Research and Technology
\nKusmayanto Kadiman said on Tuesday.<\/p>\n
The draft of the presidential instruction contained mostly
\nincentives for businesses that develop biofuels and was currently
\nthe subject of review from all stakeholders, he said.<\/p>\n
Kusmayanto explained that one option for the trading of
\nbiofuels could involve mixing it into existing oil-based fuel
\nproducts currently sold at gas stations.<\/p>\n
He said that the idea of combining 10 percent biofuel with 90
\npercent fuel was both technologically and economically feasible.<\/p>\n
According to recent research by the Agency for the Study and
\nApplication of Technology (BPPT), mixing in such compositions
\nwould result in lower carbon emissions.<\/p>\n
\"For a start, once the trading scheme is official, we propose
\nthat the end result of the mixture contain 5 percent biofuel.
\nThat should give time for the industry to develop themselves
\ngradually before meeting the market's demand,\" he said.<\/p>\n
The ministry stated that by 2010 the use of both biodiesel and
\nbioethanol should have reached some 2 percent of total national
\nfuel consumption.<\/p>\n
Indonesia's oil-based fuel consumption currently stands at 70
\nmillion kiloliters.<\/p>\n
Kusmayanto said that if 10 million hectares of abandoned land
\nin the country was planted for biofuel, some 40 percent of
\nIndonesia's fuel consumption could be met.<\/p>\n
There are 60 options for potential plants, ranging from
\ncassava and sugarcane for bio-ethanol, or jatropha, oil palm,
\nsunflower and soybean for bio-diesel.<\/p>\n
Investment in the sector could start from as low as Rp 300
\nmillion, depending on the scale of the plantation and the
\nfactory.<\/p>\n
\"Currently, we are one the biggest CPO (crude palm oil)
\nproducers. That could be feasible in the short period,\" he said,
\nexplaining the snowballing effect of refining CPO into bio-diesel
\nwould create employment for more than 100,000 workers.<\/p>\n
Indonesia is the second largest CPO producer in the world.
\nTogether with Malaysia, the world's largest producer, it controls
\n85 percent of global CPO production. Last year, there were a
\ntotal of 4.1 million hectares of oil palm plantations in the
\ncountry.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/biofuel-trading-scheme-awaits-regulations-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}