Indonesia: oil importer, biofuel exporter
Quicknote bioenergy economics
Xinhua. OPEC member Indonesia is aiming to export 12 billion liters (75.4 million barrels) of biofuel until 2010, an official says. The government recently announced its ambitious biofuels program with a planned investment of 205 trillion rupiah (around €17.3 billion / US$22.5 billion). The initial production target for 2009 has been set at 13 million tons per year (224,000 barrels per day).
Biofuels are expected to make up 10 percent of the country's national fuel consumption in 2010 and save foreign exchange spending from oil imports by €7.7 billion (US$10 billion), said Al Hilal Hamdi, head of the national biofuel development department. Indonesia is preparing plantation areas of at least five million hectares to grow biofuel feedstocks, he said.
Here at the Biopact we consider this short news to be important, because Indonesia backs up one of the arguments we often make in debates about 'food versus fuel', or about the economics of biofuels in developing countries. When the treasury of a country like Indonesia can save US$ 10 billion per year, and earn roughly another US$ 10 billion through exports (Indonesia's total export earnings in 2006: US$ 83 billion), then this is highly significant. With those savings and earnings, the implementation of socio-economic development programs becomes possible. Moreover, the biofuels program itself creates thousands of jobs, boosting the employment situation of the rural poor (and ultimately their food security).
If the least developed countries (LDCs) walk the same route, using such state funds for social development and a biofuels program for job creation makes for a better strategy at strengthening food (and energy) security, than the strategies called for by those who are so vehemently opposed to biofuels development in the South.
[Entry ends here]
ethanol :: biodiesel :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: trade :: Indonesia ::
Xinhua. OPEC member Indonesia is aiming to export 12 billion liters (75.4 million barrels) of biofuel until 2010, an official says. The government recently announced its ambitious biofuels program with a planned investment of 205 trillion rupiah (around €17.3 billion / US$22.5 billion). The initial production target for 2009 has been set at 13 million tons per year (224,000 barrels per day).
Biofuels are expected to make up 10 percent of the country's national fuel consumption in 2010 and save foreign exchange spending from oil imports by €7.7 billion (US$10 billion), said Al Hilal Hamdi, head of the national biofuel development department. Indonesia is preparing plantation areas of at least five million hectares to grow biofuel feedstocks, he said.
Here at the Biopact we consider this short news to be important, because Indonesia backs up one of the arguments we often make in debates about 'food versus fuel', or about the economics of biofuels in developing countries. When the treasury of a country like Indonesia can save US$ 10 billion per year, and earn roughly another US$ 10 billion through exports (Indonesia's total export earnings in 2006: US$ 83 billion), then this is highly significant. With those savings and earnings, the implementation of socio-economic development programs becomes possible. Moreover, the biofuels program itself creates thousands of jobs, boosting the employment situation of the rural poor (and ultimately their food security).
If the least developed countries (LDCs) walk the same route, using such state funds for social development and a biofuels program for job creation makes for a better strategy at strengthening food (and energy) security, than the strategies called for by those who are so vehemently opposed to biofuels development in the South.
[Entry ends here]
ethanol :: biodiesel :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: trade :: Indonesia ::
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