Sugarcane Farmers Say Molasses Production Sufficient for E10, but Pertamina's Prices Are Low

JAKARTA - APTRI Chairman Soemitro Samadikoen said molasses production is sufficient to support the E10 programme. The programme blends 90% petrol with 10% bioethanol to reduce fuel imports. Soemitro said national sugarcane production of 40 million tonnes annually yields 2 million kilolitres of molasses (5 per cent) or 500,000 litres of ethanol. ‘If we implement E10, our consumption would be about 5 million kilolitres, which is feasible,’ he said during an interview in Central Jakarta on Monday, May 25, 2026. Despite sufficient molasses production for E10, sugarcane farmers say Pertamina’s purchase price is too low. The state-owned oil and gas company offers farmers just Rp 957 per kilogram for molasses, compared to the export price of Rp 1,500 per kilogram. ‘Pertamina NRE’s calculations at the time, with current ethanol prices, our molasses used as ethanol feedstock is valued below Rp 1,000,’ Soemitro said. Soemitro noted that if exporters are willing to buy at Rp 1,500 per kilogram, they can still sell it at a higher price. The commodity remains marketable and exporters make a profit. ‘The exporters aren’t me but the traders who export; they buy from us at around Rp 1,400-1,500 per kilogram and sell it higher,’ he said. Soemitro hopes the government will set a competitive price for molasses to fairly compensate sugarcane farmers. He said state-owned enterprises (SOEs) should not solely pursue economic profit but also provide social value to the public. ‘We want molasses that used to sell at Rp 2,500 per kilogram to not drop below Rp 1,000-1,200; it was once sold at Rp 900. We shouldn’t be undervalued, especially by the government,’ he added.