Jakarta—Pertamina New & Renewable Energy (Pertamina NRE) and PT Sinergi Gula Nusantara (SGN) began a strategic collaboration to construct a bioethanol plant in Glenmore, Banyuwangi Regency, East Java. The plant will utilise molasses, a by-product of sugarcane processing, as the main raw material to produce bioethanol with a capacity of up to 30,000 kiloliters (KL) per year.
The bioethanol plant aims to accelerate the national energy transition through the provision of biofuel, support Indonesia’s efforts to reduce greenhouse gas (GHG) emissions and reduce dependence on imported fuel oil. John Anis, CEO of Pertamina NRE, stated that this collaboration is a strategic step in supporting the government’s target to achieve energy self-sufficiency.
“We believe the collaboration between Pertamina NRE and SGN will positively impact and accelerate the energy transition in Indonesia. This is part of our efforts to develop renewable energy, especially bioethanol,” John Anis said after signing the cooperation in a written statement Friday, September 6.
Mahmudi, President Director of SGN, also appreciated this cooperation as a concrete step in supporting Presidential Regulation No. 40 of 2023 on accelerating national sugar self-sufficiency and providing bioethanol. “This cooperation is in line with our commitment to continue supporting the development of bioethanol in Indonesia. This is one way to optimize the sugar industry’s by-product, molasses, which has not been utilised to its full potential,” Mahmudi said.
The bioethanol plant to be built in Banyuwangi is projected to produce around 100 kiloliters daily. The bioethanol produced will be used as a fuel mixture for Pertamax Green 95, an environmentally friendly fuel product launched by Pertamina in 2023.
In addition to cooperating with SGN, Pertamina NRE is also collaborating with the East Nusa Tenggara (NTT) Provincial Government to develop a bioethanol project in the region. The project aims to utilise land in NTT to grow various energy crops suitable for producing bioethanol, such as corn, sugarcane, and cassava.
The Acting Governor of NTT, Ayodhia G L Kalake, expressed his hope that the project will support the renewable energy program and provide economic benefits to local communities.
“We hope that the development of bioethanol in NTT can positively impact community welfare and regional economic growth. Geographically, NTT is very suitable for energy crops such as corn, which will be the main raw material for bioethanol production,” Ayodhia said.
Implementing bioethanol as a fuel mixture is also in line with the government’s efforts to reduce GHG emissions from the transportation sector. In addition, the development of bioethanol is expected to improve the regional economy, create new jobs, and support Indonesia’s target to achieve net zero emission (NZE) by 2060.
Pertamina NRE will provide bioethanol, which will then be processed and distributed through PT Pertamina Patra Niaga, part of Pertamina Group.
“As part of Pertamina Group, we continue to be committed to supporting the energy transition and achieving Indonesia’s aspirations towards NZE. Initiatives like this are an important part of our commitment to environmental, social and corporate governance (ESG),” concluded John Anis.
With this project, Pertamina NRE, SGN, and the NTT Provincial Government are expected to encourage wider bioethanol development, increase renewable energy production, and support Indonesia’s big agenda towards green energy and economic sustainability. (Hartatik)
Banner photo: Organically produced blackstrap molasses produced in Paraguay. Wikimedia commons/Badagnani
