Jakarta – Pertamina New and Renewable Energy (NRE) chief executive officer John Anis said that the potential of molasses for bioethanol must be maximised to support national energy self-sufficiency. According to him, Indonesia’s efforts towards sustainable energy security can be accelerated if the government implements a Domestic Market Obligation (DMO) for molasses as a raw material for bioethanol.
“Currently, a lot of molasses is exported abroad, especially to the Philippines, at a fairly high price. If there is a DMO policy for molasses, the availability of bioethanol raw materials in the country can be better guaranteed,” he said in an official statement, Tuesday, 11 March.
John highlighted that implementing DMO for molasses could help stabilise ethanol prices in the domestic market. Until now, molasses, a by-product of the sugarcane industry, has been exported rather than used for the domestic production of environmentally friendly fuels.
“With the DMO, bioethanol prices can be more competitive and cheaper for the public. If this policy is implemented, the price of molasses in the country can be more stable, and the bioethanol industry can develop faster,” he explained.
Furthermore, John considers that bioethanol is an energy transition solution that can be implemented immediately, especially since the majority of vehicles in Indonesia still use conventional engines. By using bioethanol, dependence on fossil-based fuel oil imports can be significantly reduced.
The government itself has set ambitious targets for bioethanol utilisation. By 2029, bioethanol demand in Indonesia is projected to reach 5 million kilolitres (kl), while current domestic production is only around 30 thousand kl.
“The potential is huge, but our production is still far from the target. Therefore, if there are regulations such as the DMO for molasses, the domestic industry can develop and help achieve the target,” said John.
He also compared the DMO policy applied to other commodities such as coal. “Coal alone can be subject to DMO to ensure domestic needs are met, why not molasses? This is in the interest of our national energy,” he said.
According to John, implementing the molasses DMO will help energy self-sufficiency and create a positive chain effect for the industry and the national economy. With a clear policy, the domestic bioethanol market can grow rapidly and attract more investment.
“We need regulations to ensure that bioethanol can be accessed at affordable prices and produced in sufficient quantities. With the DMO of molasses, we can ensure this happens,” he concluded. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2025)
