"The most potential location is in East Java because of its molasses content," the ministry's Acting Director General of Agro-Industry, Putu Juli Ardika, said on Wednesday.
Molasses is a byproduct of the sugar processing industry, particularly sugarcane and beetroot, which can be processed into bioethanol.
Currently, the government has allocated Rp1.6 trillion (US$93 million) for the ratoon removal program, which involves rejuvenating unproductive sugarcane plants.
Of the Rp1.6 trillion allocated, the ratoon removal program is targeted to cover 100,000 hectares of land, with the primary focus being on East Java, with 70,000 hectares covering 26 districts, Ardika remarked.
In addition, Merauke could also become an option once the sugar self-sufficiency program, which involves sugarcane plantations in the region, has yielded results.
However, if the project uses sago-based ethanol, the site for the plant is still being assessed, he explained.
"If it's sago-based, this is currently being studied by the National Agency for Research and Innovation (BRIN). It could be implemented in several locations, such as Papua, Maluku, Sulawesi, Kalimantan, and Sumatra," he continued.
Previously, the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, announced President Prabowo Subianto's approval of a mandatory 10 percent ethanol for a fuel blend, in order to reduce carbon emissions and dependence on fuel imports.
He stated that implementing E10 by 2027 will require 1.4 million kiloliters (KL) of ethanol as raw material.
Lahadalia is working to ensure that domestic plants can meet this ethanol demand, eliminating the need for imports.
Therefore, he emphasized the importance of developing ethanol plants, whether produced from cassava, corn, or sugarcane.
He mentioned that a sugarcane-based ethanol plant will likely be built in Merauke, South Papua. Meanwhile, the location for a cassava-based ethanol plant is still being discussed.
The Deputy Minister of Investment and Downstreaming, Todotua Pasaribu, also noted that the Japanese automaker Toyota has shown interest in establishing an ethanol plant in Indonesia.
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Translator: Resinta Sulistiyandari
Editor: Azis Kurmala
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