Ministry of Energy Allocates JTB Gas for Bioethanol-Methanol Plant in Bojonegoro, but Forestry Permit Remains Pending
The Ministry of Energy and Mineral Resources (ESDM) has allocated 110 MMBTu (Million British Thermal Units) of gas from the Jambaran-Tiung Biru (JTB) field to PT Butonas Petrochemical Indonesia (BPI) for the construction of a bioethanol-methanol plant in Bojonegoro Regency, East Java. However, the Ministry of Forestry has yet to grant a permit for the release of forest land as the factory site.
Deputy Minister of Energy and Mineral Resources Yuliot Tanjung said the bioethanol-methanol plant would be built in the Bojonegoro industrial zone by PT Butonas Petrochemical Indonesia. Gas supply from the JTB field has been prepared to support the plant's operations.
"We have allocated approximately 110 MMBTu for gas availability. Hopefully this will be realised soon," Yuliot said in response to questions whilst attending the inauguration of increased oil production at the Banyu Urip field, Cepu Block, in Gayam District, Bojonegoro Regency, East Java, on Thursday (26 June 2025).
The JTB gas allocation for PT Butonas Petrochemical Indonesia is set out in ESDM Minister's letter number T-174/MG.04/MEM.M/2025 dated 16 April 2025, signed by Energy Minister Bahlil Lahadalia. The daily offtake volume is 90 MSCFD, with the final delivery point at the seller's metering equipment. The supply period runs from 1 January 2028 to 17 September 2035.
The bioethanol-methanol plant in Bojonegoro Regency will be constructed on forest land. Investment in the project amounts to Rp 22.8 trillion. Construction is targeted for completion in 2027.
Slamet Juwanto, Administrator of KPH Perhutani Bojonegoro, said that KPH Bojonegoro has prepared land in the forest zone for the bioethanol-methanol plant construction at RPH Sawitrejo in Bandungrejo Village, Ngasem District. The total area covers 5,130 hectares.
"130 hectares will be for the factory site, and 5,000 hectares for sorghum cultivation to support bioethanol raw materials," he said when contacted separately whilst also attending the inauguration of increased oil production at the Banyu Urip field, Cepu Block.
Juwanto explained that the forest land prepared for the bioethanol-methanol plant in Bojonegoro Regency is located not far from the JTB gas field operated by Pertamina EP Cepu (PEPC) Zone 12. "It's right next to JTB. Both are in the same location," he said.
Although KPH Bojonegoro has prepared 5,130 hectares of land, Juwanto continued, the bioethanol-methanol plant construction plan has not seen significant progress to date. The Ministry of Forestry has not yet issued the forest area release permit.
"The application has been submitted. It is already on the minister's desk. It just needs to be signed," he revealed.
Juwanto added that current regulations on the use of forest land no longer employ a land-swap system. Moreover, the land is to be used for a National Strategic Project (PSN). "Bioethanol-methanol is classified as a PSN. So there are exceptions. The only requirement is a forest area release permit," he concluded.
Deputy Minister of Energy and Mineral Resources Yuliot Tanjung said the bioethanol-methanol plant would be built in the Bojonegoro industrial zone by PT Butonas Petrochemical Indonesia. Gas supply from the JTB field has been prepared to support the plant's operations.
"We have allocated approximately 110 MMBTu for gas availability. Hopefully this will be realised soon," Yuliot said in response to questions whilst attending the inauguration of increased oil production at the Banyu Urip field, Cepu Block, in Gayam District, Bojonegoro Regency, East Java, on Thursday (26 June 2025).
The JTB gas allocation for PT Butonas Petrochemical Indonesia is set out in ESDM Minister's letter number T-174/MG.04/MEM.M/2025 dated 16 April 2025, signed by Energy Minister Bahlil Lahadalia. The daily offtake volume is 90 MSCFD, with the final delivery point at the seller's metering equipment. The supply period runs from 1 January 2028 to 17 September 2035.
The bioethanol-methanol plant in Bojonegoro Regency will be constructed on forest land. Investment in the project amounts to Rp 22.8 trillion. Construction is targeted for completion in 2027.
Slamet Juwanto, Administrator of KPH Perhutani Bojonegoro, said that KPH Bojonegoro has prepared land in the forest zone for the bioethanol-methanol plant construction at RPH Sawitrejo in Bandungrejo Village, Ngasem District. The total area covers 5,130 hectares.
"130 hectares will be for the factory site, and 5,000 hectares for sorghum cultivation to support bioethanol raw materials," he said when contacted separately whilst also attending the inauguration of increased oil production at the Banyu Urip field, Cepu Block.
Juwanto explained that the forest land prepared for the bioethanol-methanol plant in Bojonegoro Regency is located not far from the JTB gas field operated by Pertamina EP Cepu (PEPC) Zone 12. "It's right next to JTB. Both are in the same location," he said.
Although KPH Bojonegoro has prepared 5,130 hectares of land, Juwanto continued, the bioethanol-methanol plant construction plan has not seen significant progress to date. The Ministry of Forestry has not yet issued the forest area release permit.
"The application has been submitted. It is already on the minister's desk. It just needs to be signed," he revealed.
Juwanto added that current regulations on the use of forest land no longer employ a land-swap system. Moreover, the land is to be used for a National Strategic Project (PSN). "Bioethanol-methanol is classified as a PSN. So there are exceptions. The only requirement is a forest area release permit," he concluded.