{
    "success": true,
    "data": {
        "id": 1764069,
        "msgid": "government-aims-to-boost-bioethanol-in-fuel-from-sugarcane-molasses-farmers-respond-1780147628",
        "date": "2026-05-25 19:05:00",
        "title": "Government Aims to Boost Bioethanol in Fuel from Sugarcane Molasses; Farmers Respond",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Agriculture",
        "summary": "The Indonesian government\u2019s initiative to boost bioethanol blending in fuel has faced criticism from sugarcane farmers, who argue that despite sufficient domestic molasses supply, current pricing fails to compensate them fairly. APTRI highlighted that molasses prices for domestic ethanol production are below export rates, risking farmer livelihoods, and raised concerns over potential ethanol imports from the US despite existing domestic capacity.",
        "content": "<p>The government\u2019s plan to promote bioethanol as a fuel blend has drawn\nscrutiny from sugarcane farmers. The Asosiasi Petani Tebu Rakyat\nIndonesia (APTRI) states that raw material supply, namely sugarcane\nmolasses, is sufficient to support a 10% ethanol blend (E10), but\npricing remains the primary obstacle.<\/p>\n<p>APTRI Chairman Soemitro Samadikoen said national sugarcane production\nhas the potential to generate significant bioethanol. He stated that\nfrom an annual output of around 40 million tonnes of sugarcane, the\nresulting molasses could meet the nation\u2019s ethanol blending\nrequirements.<\/p>\n<p>\u201cSo, our annual sugarcane production is about 40 million tonnes.\nTaking 5% of that gives us around 2 million kilolitres of molasses. When\nconverted to ethanol, that\u2019s divided by four, resulting in 500,000\nkilolitres of ethanol \u2014 which is sufficient for an E10 blend,\u201d Soemitro\nsaid during APTRI\u2019s National Working Meeting in Jakarta on Monday, 25\nMay 2026.<\/p>\n<p>He explained that national demand for Pertamax fuel is estimated at\naround 5 million kilolitres annually, meaning domestic molasses-derived\nethanol supply is sufficient for an E10 blend.<\/p>\n<p>\u201cThat would meet E10 requirements,\u201d he added.<\/p>\n<p>However, Soemitro argued that bioethanol development has not provided\nfair returns for sugarcane farmers, complaining that molasses prices are\nset too low under domestic bioethanol schemes.<\/p>\n<p>\u201cMolasses is priced at around Rp957 per kilogram domestically, yet we\nexport it for Rp1,600 per kg. Why are we being pressured to accept such\nlow prices?\u201d he said.<\/p>\n<p>Domestic molasses prices for ethanol production have been pushed\nbelow Rp1,000 per kilogram, despite export prices remaining\nsignificantly higher.<\/p>\n<p>\u201cMolasses, as ethanol feedstock, is valued at under Rp1,000 per\nkilogram. Previously, it sold for up to Rp2,500, and most recently at\nRp1,500 per kilogram for exports,\u201d Soemitro said.<\/p>\n<p>This means farmers are being disadvantaged if molasses prices remain\nso low.<\/p>\n<p>\u201cPricing it this way shows no respect for our hard work. It\u2019s unfair\n\u2014 don\u2019t do this,\u201d he said.<\/p>\n<p>Soemitro also questioned the government\u2019s commitment to absorbing\ndomestic ethanol, including Pertamina\u2019s readiness for bioethanol-blended\nfuel programmes.<\/p>\n<p>\u201cWill Pertamina even accept it? I don\u2019t know. Pertamina sells\nPertamax Green, but where is the blending happening?\u201d he asked.<\/p>\n<p>On the other hand, he expressed concern that the government\u2019s push\nfor bioethanol could lead to increased ethanol imports, citing reports\nof a US ethanol purchase agreement.<\/p>\n<p>\u201cI heard it\u2019s being pushed, but if there\u2019s a deal to buy one million\nkilolitres of ethanol from the US, what\u2019s the point?\u201d he said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/government-aims-to-boost-bioethanol-in-fuel-from-sugarcane-molasses-farmers-respond-1780147628",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}