Rp 22.8 Trillion Bioethanol-Methanol Mega Project Raises Hopes for Bojonegoro
The planned bioethanol-methanol mega project worth Rp 22.8 trillion has become a new source of hope for the people of Bojonegoro Regency, East Java. This national strategic project (PSN) is expected to create a multiplier effect from the construction phase through to full plant operations.
Bojonegoro KPH Perhutani Administrator Slamet Juwanto said the bioethanol-methanol project would create employment and business opportunities for Bojonegoro residents, who could be involved both directly and indirectly.
"When construction begins, there will certainly be demand for labour and business opportunities that the community can seize," he said whilst attending the inauguration of increased oil production at the Banyu Urip field, Cepu Block, to 30,000 barrels per day on Thursday (26 June 2025).
According to Juwanto, the bioethanol plant construction is considered to provide greater multiplier effects for the community than the methanol plant, as the bioethanol facility will use sorghum as its raw material. Daily sorghum production requirements will reach approximately 170,000 tonnes.
"It won't just be sorghum grain that is processed — the leaves and stalks can also be processed at the bioethanol plant. So nothing goes to waste," he stressed.
Juwanto explained that this sorghum demand could become an opportunity for forest farmers to meet supply needs. It would also absorb considerable labour from harvesting through to transporting sorghum to the bioethanol plant.
"Methanol is like the Jambaran-Tiung Biru gas processing operation. Once the plant is built, it will be operated by machines, so labour requirements are minimal — the bulk of employment is only during construction," Juwanto explained.
"The bioethanol plant is different — many workers are involved every day, from harvesting to truck drivers transporting sorghum. Hundreds of trucks will eventually be needed to transport the sorghum," he continued.
Perhutani KPH Bojonegoro has prepared 5,130 hectares of forest land for the bioethanol-methanol plant construction — 130 hectares for the plant site and 5,000 hectares for sorghum raw material support land. The location is in the forest area adjacent to the Jambaran-Tiung Biru (JTB) gas processing facility, specifically in RPH Sawitrejo, Bandungrejo Village, Ngasem District.
"The system will allow farmers to enter into partnerships with the plant. As long as sorghum prices are good and higher than maize prices, I am confident forest farmers here will naturally switch to growing sorghum," he said.
Another opportunity presented by the bioethanol plant is the provision of sorghum transport fleets. Juwanto said this could be developed in cooperation with forest village community institutions (LMDH) and Village-Owned Enterprises (BUMDes) in the Ngasem and Gayam districts.
"My plan is for surrounding BUMDes to also be involved," he affirmed.
Juwanto added that the bioethanol-methanol plant construction is currently awaiting forest area release permits from the Ministry of Forestry. "The application has been submitted. It is on the minister's desk. It just needs to be signed," he concluded.
Gayam Village Head Winto expressed support for Perhutani KPH Bojonegoro's plan to involve forest farming communities and BUMDes in bioethanol-methanol plant activities. "This is a great opportunity. We certainly welcome it," said the head of the village that produces oil and gas from the Banyu Urip field, Cepu Block.
The bioethanol-methanol plant will be operated by PT Butonas Petrochemical Indonesia (BPI). The company, established in 2021, has been allocated gas from the JTB field of approximately 110 MMBTu (Million British Thermal Units), with the allocation period running from 1 January 2028 to 17 September 2035.
"We have allocated approximately 110 MMBTu of gas from JTB. Hopefully this will be realised soon," said Deputy Minister of Energy and Mineral Resources Yuliot Tanjung at the inauguration of increased oil production at the Banyu Urip field, Cepu Block.
Bojonegoro KPH Perhutani Administrator Slamet Juwanto said the bioethanol-methanol project would create employment and business opportunities for Bojonegoro residents, who could be involved both directly and indirectly.
"When construction begins, there will certainly be demand for labour and business opportunities that the community can seize," he said whilst attending the inauguration of increased oil production at the Banyu Urip field, Cepu Block, to 30,000 barrels per day on Thursday (26 June 2025).
According to Juwanto, the bioethanol plant construction is considered to provide greater multiplier effects for the community than the methanol plant, as the bioethanol facility will use sorghum as its raw material. Daily sorghum production requirements will reach approximately 170,000 tonnes.
"It won't just be sorghum grain that is processed — the leaves and stalks can also be processed at the bioethanol plant. So nothing goes to waste," he stressed.
Juwanto explained that this sorghum demand could become an opportunity for forest farmers to meet supply needs. It would also absorb considerable labour from harvesting through to transporting sorghum to the bioethanol plant.
"Methanol is like the Jambaran-Tiung Biru gas processing operation. Once the plant is built, it will be operated by machines, so labour requirements are minimal — the bulk of employment is only during construction," Juwanto explained.
"The bioethanol plant is different — many workers are involved every day, from harvesting to truck drivers transporting sorghum. Hundreds of trucks will eventually be needed to transport the sorghum," he continued.
Perhutani KPH Bojonegoro has prepared 5,130 hectares of forest land for the bioethanol-methanol plant construction — 130 hectares for the plant site and 5,000 hectares for sorghum raw material support land. The location is in the forest area adjacent to the Jambaran-Tiung Biru (JTB) gas processing facility, specifically in RPH Sawitrejo, Bandungrejo Village, Ngasem District.
"The system will allow farmers to enter into partnerships with the plant. As long as sorghum prices are good and higher than maize prices, I am confident forest farmers here will naturally switch to growing sorghum," he said.
Another opportunity presented by the bioethanol plant is the provision of sorghum transport fleets. Juwanto said this could be developed in cooperation with forest village community institutions (LMDH) and Village-Owned Enterprises (BUMDes) in the Ngasem and Gayam districts.
"My plan is for surrounding BUMDes to also be involved," he affirmed.
Juwanto added that the bioethanol-methanol plant construction is currently awaiting forest area release permits from the Ministry of Forestry. "The application has been submitted. It is on the minister's desk. It just needs to be signed," he concluded.
Gayam Village Head Winto expressed support for Perhutani KPH Bojonegoro's plan to involve forest farming communities and BUMDes in bioethanol-methanol plant activities. "This is a great opportunity. We certainly welcome it," said the head of the village that produces oil and gas from the Banyu Urip field, Cepu Block.
The bioethanol-methanol plant will be operated by PT Butonas Petrochemical Indonesia (BPI). The company, established in 2021, has been allocated gas from the JTB field of approximately 110 MMBTu (Million British Thermal Units), with the allocation period running from 1 January 2028 to 17 September 2035.
"We have allocated approximately 110 MMBTu of gas from JTB. Hopefully this will be realised soon," said Deputy Minister of Energy and Mineral Resources Yuliot Tanjung at the inauguration of increased oil production at the Banyu Urip field, Cepu Block.