Speaking in Tangerang, Banten, on Wednesday, Hasan said that the mandatory 10 percent ethanol blend will increase the price of cassava — one of the main raw materials used to produce ethanol — to Rp2,000 (approximately US$0.12) per kilogram.
Currently, the government-set selling price for cassava stands at Rp1,350 per kilogram. With the new policy, cassava will have a higher value, which is expected to improve farmers’ welfare.
In addition to cassava, the price of sugarcane is also expected to rise.
“The program will significantly drive the people’s economy because the raw materials used are cassava, sugarcane, and corn,” Hasan said.
Earlier, Energy and Mineral Resources Minister Bahlil Lahadalia stated that President Prabowo Subianto had approved the plan to mandate a 10 percent ethanol blend in gasoline as part of efforts to reduce carbon emissions and dependence on fuel imports.
“We held a meeting with Mr. President last night, and he has approved our plan for the 10 percent mandatory ethanol (E10),” Lahadalia said in Jakarta on Tuesday (October 7).
The minister emphasized that, in addition to reducing dependence on fuel imports, the E10 policy also aims to promote the use of cleaner and more environmentally friendly gasoline.
Meanwhile, a member of Commission XII of the House of Representatives (DPR RI), Ratna Juwita Sari, reminded the government that the E10 policy must not become a justification for large-scale ethanol imports in the future.
She stressed that the government must ensure that domestic ethanol production capacity can meet national demand before the policy is implemented.
Related news: President Prabowo approves E10 fuel policy to cut imports, emissions
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Translator: Maria Cicilia, Raka Adji
Editor: M Razi Rahman
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