Indonesian Political, Business & Finance News

GAIKINDO Reveals Key Tactics to Reduce Petrol Imports

| Source: CNBC Translated from Indonesian | Energy
GAIKINDO Reveals Key Tactics to Reduce Petrol Imports
Image: CNBC

Jakarta — The Association of Indonesian Automotive Industries (GAIKINDO) says that blending bioethanol into petrol is a crucial step in reducing Indonesia’s reliance on petrol imports. Secretary-General Kukuh Kumara explained that most transport vehicles in Indonesia run on petrol, which keeps petrol imports large. He noted that imports amount to around 28 million kilolitres per year, a figure not surprising given the prevalence of petrol-powered vehicles, and the challenge lies in securing ethanol supply and its feedstock.

Kukuh told CNBC Indonesia’s Energy Forum that Indonesia has already begun a 5% ethanol blend (E5) and the government plans to raise this to E10 in the future. However, GAIKINDO’s studies indicate that vehicles on Indonesian roads are actually capable of using blends up to E20. “The products available today have already reached E20, though not officially certified; and if we go to E10, that is already official. Moreover, as Mr Eddy mentioned earlier, the engines used in Brazil are Karawang-made,” he said.

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