The Energy and Mineral Resources Ministry of Indonesia projects that a US$1.16 billion ethanol and methanol processing facility in Bojonegoro, East Java, will be completed by the end of 2027. Deputy Minister Yuliot Tanjung stated that this national strategic project aims to boost biodiesel production, as methanol and ethanol are crucial for producing fatty acid methyl ester (FAME), which is mixed with diesel fuel. He highlighted the country's heavy reliance on methanol imports, with domestic production at only 300,000 tonnes compared to the annual requirement of 2.3 million tonnes. Indonesia has been a net importer of oil and fuel for decades, with over a third of its fuel consumption met through imports. This dependency has strained the government budget due to fuel subsidies and fluctuations in the rupiah exchange rate and international oil prices. Tanjung expressed optimism that the new factory would reduce Indonesia's dependence on methanol imports, aligning with efforts to establish a robust methanol industry in Bojonegoro.The Indonesian Biofuel Producer Association (APROBI) noted that the country needs to expand its biodiesel production capacity by 4 million kiloliters to meet the demand if the mandatory B50 program is implemented. Currently, Indonesia has about 19.6 million kiloliters of installed biodiesel production capacity, with an average utilization rate of 85 percent. Additionally, Indonesia aims to introduce bioethanol-mixed gasoline programs, although progress has been slow. Both bioethanol and biodiesel initiatives are part of the national energy priorities to reduce crude oil and fuel imports, leveraging the country's abundant natural resources for energy security.Source: https://www.thejakartapost.com/business/2025/03/17/ministry-expects-1-2b-ethanol-methanol-factory-project-to-be-complete-in-2027.html (ICE GIACARTA)

Fonte notizia: The Jakarta Post, 17 March 2025