Indonesian Political, Business & Finance News

Bahlil says E10 feedstock will come from plantations in Java, Sumatra and Papua

| Source: ANTARA_ID Translated from Indonesian | Energy
Bahlil says E10 feedstock will come from plantations in Java, Sumatra and Papua
Image: ANTARA_ID

Jakarta (ANTARA) – Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia said feedstock for E10 bioethanol would come from plantations in Java, Sumatra and Papua.

“It has been mapped out. Some are in Java, some in Sumatra, and some in Papua,” Bahlil said on Monday on the sidelines of a national working meeting of the Indonesian Indigenous Entrepreneurs Association (HPPI) in Jakarta.

Bahlil said the government was currently refining plans to introduce E50, a fuel blend containing 50 per cent ethanol.

He said the plans took industrial capacity through 2028 into account. He did not want mandatory bioethanol use in 2028 to force Indonesia to import ethanol.

“We are looking at what our industrial capacity is like through to 2028. We must not introduce a mandate only to end up importing the ethanol. That is not acceptable,” he said.

Bahlil, who is also Energy and Mineral Resources Minister, stressed the importance of introducing bioethanol soon, as Indonesia remains dependent on imports.

He said Indonesians consume a total of 1.6 million barrels of fuel a day, while domestic oil lifting stands at around 600,000 barrels a day.

“So we import roughly 1 million barrels a day. But we are grateful that, for diesel, we already have B50, meaning we no longer import diesel,” Bahlil said.

Citing the success of B50, Bahlil said the government was promoting E50, using sugar cane, cassava and maize as feedstock.

He said the move would also create new economic growth areas and a market for cassava plantations.

“Until now, if someone wanted to grow cassava, who would buy it? This is the answer: make ethanol. We will begin implementing the mandatory requirement in 2027. This is also a business opportunity to develop ethanol,” Bahlil said.

View JSON | Print