Merauke Food Estate to Drive Sugar Self-Sufficiency and Bioethanol Energy Transition
The government is pursuing an ambitious food estate programme in Merauke, where two million hectares of land will be devoted to integrated sugarcane cultivation alongside sugar and bioethanol industries, aimed at accelerating Indonesia's energy transition.
Bahlil Lahadalia, who in his final year as Minister of Investment and concurrent head of the Investment Coordinating Board (BKPM) in 2024, led the acceleration of the project. The sugarcane produced will not only target sugar self-sufficiency but will also be utilised as a source of biofuel and an alternative to conventional petroleum-based fuels.
According to the official BKPM website, President Jokowi issued Presidential Decree No. 15/2024 in April 2024, establishing a Task Force for Sugar and Bioethanol Self-Sufficiency in Merauke, led directly by Bahlil.
Bahlil stressed that the project must operate on the principles of sustainability and local community empowerment, prioritising customary rights, mutual benefit, and the involvement of local entrepreneurs and workers. He emphasised that companies must not marginalise the Papuan people for the sake of economic gain alone.
Within Cluster 3, covering approximately half a million hectares, the government and private sector partners plan to construct five integrated factories, each encompassing sugar and bioethanol production, supported by modern mechanisation technology and superior seedlings sourced both domestically and from Australia.
With an investment value of US$5.62 billion (approximately Rp83.3 trillion), the project is planned to begin producing bioethanol by 2027 as part of the nation's commitment towards agricultural and energy self-sufficiency.
Bahlil Lahadalia, who in his final year as Minister of Investment and concurrent head of the Investment Coordinating Board (BKPM) in 2024, led the acceleration of the project. The sugarcane produced will not only target sugar self-sufficiency but will also be utilised as a source of biofuel and an alternative to conventional petroleum-based fuels.
According to the official BKPM website, President Jokowi issued Presidential Decree No. 15/2024 in April 2024, establishing a Task Force for Sugar and Bioethanol Self-Sufficiency in Merauke, led directly by Bahlil.
Bahlil stressed that the project must operate on the principles of sustainability and local community empowerment, prioritising customary rights, mutual benefit, and the involvement of local entrepreneurs and workers. He emphasised that companies must not marginalise the Papuan people for the sake of economic gain alone.
Within Cluster 3, covering approximately half a million hectares, the government and private sector partners plan to construct five integrated factories, each encompassing sugar and bioethanol production, supported by modern mechanisation technology and superior seedlings sourced both domestically and from Australia.
With an investment value of US$5.62 billion (approximately Rp83.3 trillion), the project is planned to begin producing bioethanol by 2027 as part of the nation's commitment towards agricultural and energy self-sufficiency.