Indonesia will soon begin building facilities to produce methanol and ethanol in an effort to reduce its heavy dependence on imports, State Secretary Prasetyo Hadi said on Sunday. He noted that several projects are set to start construction but did not share further details, reports The Jakarta Post.
“We expect that within the next two years, reliance on methanol and ethanol imports will decrease,” Prasetyo told reporters after President Prabowo Subianto met with ministers to review energy plans, including oil production targets presented by Energy and Mineral Resources Minister Bahlil Lahadalia.
In May, the energy ministry announced that construction of a US$1.16 billion ethanol and methanol plant in Bojonegoro, East Java, was expected to be completed within two years. The plant is aimed at boosting domestic biodiesel production and has been declared a national strategic project.
Deputy Energy Minister Yuliot Tanjung had earlier said the government hoped the Bojonegoro facility could be finished by the end of 2027. He pointed out that Indonesia’s demand for methanol is around 2.3 million tonnes annually, while local production is only about 300,000 tonnes, forcing the country to rely heavily on imports.
