Key insights and market outlook
PT Pertamina (Persero) is developing aren palm as a new source for bioethanol production, collaborating with the Ministry of Forestry. The project aims to create a renewable energy source with aren showing 4-5 times higher ethanol production per hectare compared to other sources. Initial pilot projects are underway in Garut and Tasikmalaya, West Java, with estimated investment of Rp 15-20 billion for 1,000 liters daily production capacity.
PT Pertamina (Persero) is advancing its renewable energy portfolio by developing aren palm as a new source for bioethanol production. This initiative, in collaboration with the Ministry of Forestry, aims to create a sustainable and environmentally friendly energy alternative. The project is currently in the pilot stage, with locations in Garut and Tasikmalaya, West Java.
Aren palm has shown promising results, with the potential to produce 4-5 times more ethanol per hectare compared to other sources like sugarcane or corn. According to John Anis, CEO of Pertamina New & Renewable Energy (PNRE), one hectare of aren can yield approximately 24,000 liters of bioethanol annually. This makes it a highly attractive option for scaling up production.
The initial investment for a pilot project producing 1,000 liters of bioethanol per day is estimated to be between Rp 15 billion to Rp 20 billion, with annual operational costs around Rp 1 billion. Simon, a Pertamina executive, mentioned that the company is currently utilizing existing aren resources in West Java while planning for broader cultivation in other regions where aren is naturally grown, such as North Sulawesi and Kalimantan.
This project aligns with Pertamina's strategy of energy diversification and commitment to sustainable development. By exploring alternative sources like aren for bioethanol, Pertamina aims to reduce dependence on fossil fuels and contribute to Indonesia's renewable energy targets. The success of this initiative could potentially position aren as a key player in the country's biofuel sector.
Bioethanol Pilot Project Launch
Renewable Energy Investment