Biofuel producers raise supply for domestic market

The government?s decision to raise subsidy for biofuel to Rp 2,000 (1US$ = Rp 9,035) per liter has resulted in an increase in the supply of biofuel at home as many producers have shifted their exports to the domestic market to benefit from the higher subsidy.

Paulus Tjakrawan, the secretary general of the association of Indonesian Biofuel Producers (Aprobi) said in Jakarta Wednesday that the increased subsidy enables biofuel producers to get higher returns.

Paulus estimated the association?s members would supply at least 500,000 kiloliters (kl) of biodiesel and 200,000 kl of bioethanol, to Pertamina this year. Last year, the association only supplied about 350,000 kl of biodiesel and 170,000 kl of bioethanol.

Seprately, Deni Wisnuwardani, fuel marketing vice preident at state owned oil and gas firm Petamina, said the firm was still faced some difficulties in selling biofuel this year. The firm is lacking ethanol to produce Biopremium (a blend of biothenal and Premium gasoline) and Biopertamax (a blend of bioethanol with Pertamax gasoline).

"Basically, we are able to process biofuel as long as the raw materials are available," Deni said.

The government raised the subsidy for the distribution of biofuels to Rp 2,000 per liter this year from Rp 1,000 last year in order to encourage biofuel production at home. The subsidy is given when the domestic fuel price is lower than the market prices.

Indonesia began using biofuel in October 2008 as part of a government program to reduce the consumption of oil-based fuels. Currently, the country produces bioethanol and biodiesel. Bioethanol, made from cassava, sugarcane and sweet sorghum, is blended with subsidized premium gasoline, while biodiesel, made from castor and crude palm oil, is mixed with subsidized diesel. (*)

Biofuels Producers

Biodiesel
Company	Location	Capacity (kl/th)
PT Energi Alternatif	North Jakarta	8,000
PT Eternal Buana Chemical Ind.	Cikupa, Tanggerang	46,000
PT Indo Biofuels Energi	Merak, Cilegon	70,000
PT Anugrah Inti Gemanusa	Gresik	46,000
PT Eterindo Nusa Graha	Gresik	46,000
PT Wilmar Bio Energi Indonesia	Dumai, Riau	1,207,000
PT Sumi Asih Oleochemical	Jatimulya, Bekasi	115,000
PT Darmex Biofuels	Desa Pejuang, Bekasi	172,000
PT Pelita Agung Agrindustri	Bengkalis, Riau	230,000
PT Musim Mas	Deli Serdang Regency	84,000
?	Batam	400,000
PT Sintong Abadi	Asahan Regency, North Sumatra	35,000
PT Pimanusa Palma Energi	North Jakarta	24,000
PT Multikimia Intipelangi	Cikarang, Bekasi	14,000
PT Cemerlang Energi Perkasa	Dumai, Riau	460,000
PT Petro Andalan Nusantara	Dumai, Riau	150,000
PT Bioenergi Pratama Jaya	Kutai Timur Regency	7,000
?	Berau Regency	70,000
PT Pasadena Biofuels Mandiri	Cikarang, Bekasi	10,240
PT Wahana Abdi Tritatehnika Sejati	Cileungsi, Bogor	13,200
PT Alia Mada Perkasa	Kosambi, Tanggerang	11,000
PT Damai Sejahtera Sentosa	Rungkut, Surabaya	137,000
PT Oil Tanking Merak	Merak, Cilegon	637,000
PT Ciliandra Perkasa	Riau	285,000
Bioetanol
PT Indolampung Distillery	Central Lampung	80,000
BPPT/Pasadena	Central Lampung	3,000
PT Berlian Energi	Bogor Regency	10,000
PT Molindo Raya Industrial;	Malang	10,000
PT Lautan Luas	Lampung	50,000
Etanol
PT Indolampung Distillery	Central Lampung	80,000
BPPT/Pasadena	Central Lampung	3,000
PT Kawan Sejati Prima	Probolinggo Regency	10,240
PT Molindo Raya Industrial;	Malang	50,000
PT Molansindo	North Sumatra	4,000
PT Permata Saksti	North Sumatra	6,750
Medco Group	Lampung	60,000
PSA Jatiroto	East Java	6,750
PT Indoacidatama	Central Java	50,000
PSA Madukismo	Yogyakarta	6,750
PT Basis Indah	South Sulawesi	4,500
Source: Ministry of Energy and Mineral Resources