Indonesia supports fuel ethanol, but can’t fund it

By Staff Report | July 14, 2017

Indonesia’s Ministry of Energy and Mineral Resources says it would like to implement fuel ethanol production incentives, but is unable to fund them.

MEMR recently released a new formula that could start the production of fuel ethanol, but has no funds to support that production, it says, because of a lack of feedstock supply and ethanol support. Indonesia hasn’t produced fuel ethanol since 2010 because of insufficient or inconsistent demand and price fluctuation, according to MEMR.

MEMR says Indonesia expects to produce 205 million liters of nonfuel ethanol from molasses in 2017 and 2018. Indonesia’s 14 ethanol plants make products for the medical and cosmetics industries, as well as exports. The country is expected to export 10 million liters of nonfuel ethanol in 2018.