Indonesia Boosts Sugarcane Ethanol Production for Energy Security

Jakarta, Indonesia – Indonesia is accelerating plans to significantly increase its ethanol production from sugarcane, aiming to bolster national energy security and reduce reliance on fossil fuels. The government has set ambitious targets for blending ethanol into gasoline, with a goal of achieving a 10% blend (E10) nationwide by 2030. To support this initiative, new investments are being channeled into expanding sugarcane cultivation areas and upgrading existing sugar mills to incorporate ethanol distillation facilities. Several state-owned enterprises and private companies are collaborating on these projects, with initial pilot programs showing promising results in East Java and Lampung provinces. This strategic shift is expected to have a dual impact on the domestic sugar market. While it could divert a portion of the sugarcane crop from sugar production to ethanol, potentially affecting sugar supply, it also offers a stable alternative revenue stream for sugarcane farmers. The government is confident that increased yields and efficiency gains in sugarcane farming will mitigate any adverse effects on sugar availability. This move aligns with global trends where major sugar-producing nations are increasingly diversifying into biofuels.