Indonesia allots 6 million hectares for biofuels
A while ago we reported about Indonesia's massive bioenergy crash program (and its potential for poverty alleviation), which is aimed at making the vast island state with its 220 million inhabitants less dependent on fossil fuels. Even though Indonesia is still an OPEC member, its oil production has steadily declined and its population - some 50% of whom live in poverty - feels the pain of rising fuel costs, which has sparked numerous and at times violent protests.
Today, more details emerged about the land resource component of the biofuels program. According to Bernama, Energy and Natural Resources Minister Dr Purnomo Yusgiantoro said the country will offer 6 million hectares to local and foreign investors to develop plantations for biofuel which would involve a total investment of approximately €16 billion (US$20 billion). "The doors are opened not only for domestic use but also for the export as worldwide biofuel demand now is increasing because of high oil prices," he told reporters after the Kuala Lumpur Business Club Roundtable Session. He said the current increase in the oil prices had made Indonesia realise the urgent need to prepare for alternative energy and energy independence.
"Indonesia is learning. Our heavy subsidy has pushed us to use oil products intensively. We realise this is not right and we are going to substitute them with alternative energy like biofuel," he said. Despite being one of Asia's largest crude oil producers, Indonesia is a net oil importer because of decades of declining investment in exploration and extraction. A move by the administration to reduce fuel subsidies last year triggered widespread protests in the Southeast Asian nation.
"It's no more about increasing production or reducing consumption or subsidies ... it's now about a move to alternative fuels," he said.
Yusgiantoro added that Malaysia's diversified conglomerate Genting Bhd. had already approached the government for a 1 million hectare allocation for biofuel development in palm oil and sugar cane. "Indonesia is a large country and we have the land ... in Sumatra, in Kalimantan, in Papua, in other places," he said. "So, if the request is 1 million hectares, then (we can handle it)."
At present several other Malaysian companies like Petroliam Nasional Bhd and Sime Darby Bhd, were keen to invest in the biofuel sector as well.
"However, the opportunity is only for upstream activities as we have decided to give Pertamina, the state-oil company, monopoly in the downstream activities."
[Entry ends here.]
ethanol :: biodiesel :: biobutanol :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: Indonesia ::
Today, more details emerged about the land resource component of the biofuels program. According to Bernama, Energy and Natural Resources Minister Dr Purnomo Yusgiantoro said the country will offer 6 million hectares to local and foreign investors to develop plantations for biofuel which would involve a total investment of approximately €16 billion (US$20 billion). "The doors are opened not only for domestic use but also for the export as worldwide biofuel demand now is increasing because of high oil prices," he told reporters after the Kuala Lumpur Business Club Roundtable Session. He said the current increase in the oil prices had made Indonesia realise the urgent need to prepare for alternative energy and energy independence.
"Indonesia is learning. Our heavy subsidy has pushed us to use oil products intensively. We realise this is not right and we are going to substitute them with alternative energy like biofuel," he said. Despite being one of Asia's largest crude oil producers, Indonesia is a net oil importer because of decades of declining investment in exploration and extraction. A move by the administration to reduce fuel subsidies last year triggered widespread protests in the Southeast Asian nation.
"It's no more about increasing production or reducing consumption or subsidies ... it's now about a move to alternative fuels," he said.
Yusgiantoro added that Malaysia's diversified conglomerate Genting Bhd. had already approached the government for a 1 million hectare allocation for biofuel development in palm oil and sugar cane. "Indonesia is a large country and we have the land ... in Sumatra, in Kalimantan, in Papua, in other places," he said. "So, if the request is 1 million hectares, then (we can handle it)."
At present several other Malaysian companies like Petroliam Nasional Bhd and Sime Darby Bhd, were keen to invest in the biofuel sector as well.
"However, the opportunity is only for upstream activities as we have decided to give Pertamina, the state-oil company, monopoly in the downstream activities."
[Entry ends here.]
ethanol :: biodiesel :: biobutanol :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: Indonesia ::
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