Indonesia to develop 2 million hectares for bioethanol production

Indonesia's Ministry of Agriculture is launching a large-scale initiative to develop a national bioethanol industry, aiming to strengthen energy sovereignty. Agriculture Minister Andi Amran Sulaiman announced plans to prepare between 1 and 2 million hectares of land to produce feedstock from three strategic commodities: sugarcane, cassava, and corn. Sugarcane is a primary focus, with a target of approximately 1 million hectares.

To implement this, the Ministry is collaborating with 44 district leaders to map land potential and assess regional readiness. The government intends to build integrated production hubs that combine feedstock cultivation with processing facilities. For corn, the government will initially support 1,000-hectare pilot projects in participating districts to evaluate productivity before expanding.

Funding for the development of ethanol plants is expected to involve a mix of State-Owned Enterprises (BUMN) and the private sector, with a projected split of 30 percent BUMN and 70 percent private investment. Minister Amran emphasized that forest clearing will be a last resort, prioritizing the use of existing agricultural and agroforestry lands. The program is part of a broader government strategy to achieve self-sufficiency in food and energy.