Danantara to invest in ethanol infrastructure over next three years
Following the recent B50 rollout, the state asset fund is aiming to invest in ethanol infrastructure toward gradual implementation of a national fuel mandate beginning with an E20 program.
Danantara plans to invest in ethanol infrastructure over the next three years as part of a national fuel mandate rollout. The state asset fund aims to complete the full investment cycle by 2029 to support Indonesia's push for food and energy self-sufficiency. COO Dony Oskaria revealed that Danantara would build an ethanol factory and sugarcane plantations, with the investment completed gradually.
Ethanol production relies on molasses, a by-product of sugar production, necessitating an expansion of sugarcane cultivation to ensure feedstock supply. The government's 50 percent biodiesel (B50) program and diesel fuel import suspension have prompted this move, as Indonesia is expected to implement a similar strategy to meet domestic gasoline demand.
Dony suggested that starting with an E20 blend could help achieve energy self-sufficiency, noting that some countries have successfully introduced a 50 percent bioethanol blend (E50).
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
