Jakarta: The Ministry of Industry has identified East Java as a prime location for setting up an ethanol plant to support Indonesia’s plan to introduce a mandatory 10 percent bioethanol blend (E10) in fuel, reports Antara News.
“The most promising location is East Java because of its high molasses output,” said Acting Director General of Agro-Industry Putu Juli Ardika on Wednesday. Molasses, a byproduct of sugar production from sugarcane and beetroot, can be processed into bioethanol.
To support this initiative, the government has allocated Rp1.6 trillion (US$93 million) for a ratoon removal program aimed at rejuvenating unproductive sugarcane crops. The program targets 100,000 hectares of land, with East Java accounting for 70,000 hectares across 26 districts, Ardika added.
He noted that Merauke could also be considered for future ethanol plant development once the region’s sugar self-sufficiency program produces results. However, for ethanol made from sago, the site is still under review. “If it’s sago-based, the National Agency for Research and Innovation (BRIN) is conducting a study. Potential sites include Papua, Maluku, Sulawesi, Kalimantan, and Sumatra,” Ardika said.
Earlier, Minister of Energy and Mineral Resources Bahlil Lahadalia announced that President Prabowo Subianto had approved the E10 fuel policy to reduce carbon emissions and dependence on imported fuel. Implementing the E10 blend by 2027 will require around 1.4 million kiloliters of ethanol annually.
Lahadalia emphasized that the goal is to meet this demand through domestic production, removing the need for imports. He highlighted plans to develop ethanol plants using cassava, corn, and sugarcane as raw materials. A sugarcane-based plant is expected to be built in Merauke, South Papua, while the location for a cassava-based facility is still being finalized.
Meanwhile, Deputy Minister for Investment and Downstream Industry Todotua Pasaribu revealed that Japanese automaker Toyota has expressed interest in investing in ethanol production facilities in Indonesia.
