Experts have warned that the bioethanol push demands rigorous scrutiny, citing potentially severe trade-offs, as producing ethanol from crops could disrupt food security, trigger land conflicts and incentivize deforestation.
Agriculure Minister Andi Amran Sulaiman fills B50 biodiesel fuel on Aug. 18, 2024 into a road-test vehicle during a soft launch of the use of B50 at PT Jhonlin Agro Raya biodiesel factory in Batulicin, Tanah Bumbu regency, South Kalimantan. (Courtesy of Agriculture Ministry/-)
The government has stated that the mandate to implement 20 percent bioethanol blend (E20) in 2028 would require around 4 million kiloliters (kl) of ethanol each year.Energy and Mineral Resources Minister Bahlil Lahadalia said that national gasoline demand currently stood at around 40 million kl per year. However, domestic refinery output currently meets only 14.3 million kl, forcing Indonesia to import nearly 25 million kl annually.
Speaking at the National Workshop of the Indonesian Science, Technology, and Industry Convention in Jakarta on Saturday, Bahlil said the supply gap is expected to narrow once the Balikpapan refinery expansion is completed in January. The refinery will add 5.5 million kl of production capacity, reducing import needs to about 20 million kl per year.
