Indonesia Prepares Land for Bioethanol Industry Expansion

Indonesia is planning to develop its bioethanol industry by preparing up to 2 million hectares of land, mainly for sugarcane production. Agriculture Minister Andi Amran Sulaiman said that securing feedstock would be the initial step before developing bioethanol production on a large scale.

The government will prioritize areas with suitable conditions and legal certainty. Sugarcane will be the main commodity in the development, targeting around 1 million hectares of land. Cassava and corn will also be developed in areas with high productivity.

To support the programme, the government will provide agricultural equipment and machinery to increase productivity while accelerating area development. The Ministry of Agriculture will involve state-owned enterprises and the private sector in financing the bioethanol industry, aiming for 30% funding from state-owned enterprises and 70% from the private sector.