BKPM: Bioethanol development to drive economic and energy resilience

Jakarta (ANTARA) - The Ministry of Investment and Downstream Industry/Investment Coordinating Board (BKPM) has stated that bioethanol development relates to economic resilience while also strengthening energy resilience through increasing the added value of agricultural commodities and diversifying energy sources.

Deputy Minister of Investment and Downstream Industry/Deputy Head of BKPM Todotua Pasaribu said bioethanol development is linked to a number of the government’s strategic agendas, ranging from energy resilience and downstream processing to the energy transition and economic resilience.

“This bioethanol development is connected to four main agendas, namely energy resilience, downstream processing, the energy transition and economic resilience. Indonesia has various raw material sources, including sugarcane, cassava and sorghum, which can be further processed to generate added value domestically,” he explained in an official statement in Jakarta on Tuesday.

He officially launched the Bioethanol Development Centre in Tegineneng Sub-district, Pesawaran Regency, Lampung, on Monday (14/9).

According to him, the need for bioethanol development is growing as national petrol consumption is projected to increase from around 37.3 million kilolitres in 2025 to 39.7 million kilolitres in 2029.

Meanwhile, domestic production capacity is not yet fully able to meet this demand, so dependence on fuel imports remains relatively high.

In the initial implementation of bioethanol-blended petrol under the E5 scheme, bioethanol demand is estimated to reach around 1.7-2 million kilolitres per year. However, domestic fuel-grade bioethanol production capacity remains limited.