The Renewable Fuels Association (RFA) has welcomed a new trade agreement between the United States and Indonesia, saying it will create fresh opportunities for American ethanol exports, Renewable Fuels Association reported.
The industry body expressed appreciation to U.S. President Donald Trump and U.S. Trade Representative Jamieson Greer for securing the agreement. RFA President and Chief Executive Officer Geoff Cooper said the deal comes at a time when U.S. ethanol shipments abroad have reached record levels.
He said Indonesia has long been considered an important market for U.S. ethanol. If the country adopts a nationwide 10 percent ethanol blend in fuel, demand could reach nearly 1 billion gallons. Cooper added that the agreement would help supply affordable and cleaner fuel to Indonesian consumers while allowing Indonesia to give priority to its own ethanol production and use U.S. supplies to meet any shortfall.
Under the agreement, Indonesia will not introduce rules that block the import of U.S. ethanol. The country has also committed to rolling out fuel blended with up to 5 percent ethanol by 2028 and increasing it to 10 percent by 2030. The deal further notes that Indonesia will work towards introducing 20 percent ethanol blends in transport fuels in the future, depending on fuel availability and supporting infrastructure.
Earlier in the day, the RFA released its annual U.S. Ethanol Trade Statistical Summary, reporting that the United States exported a record 2.18 billion gallons of ethanol to more than 80 countries worldwide.
