POTENCY AND CHALLENGES IN THE COMMERCIALIZATION OF BIOETHANOL FIRST AND SECOND GENERATION IN INDONESIA

Abstract

This article introduces the current status of bioethanol commercialization in Indonesia. The review includes government policy and technical approach of bioethanol production regarding its efficient production methods. Molasses is the only first generation’s bioethanol raw material that is used for commercialization so far. Its potency is about 1.3 to 1.6 million tons a year and only 30 to 40 percent is used for bioethanol production. Meanwhile, a second-generation bioethanol pilot plant has been established and is still being optimized to improve its effectiveness. Currently, there is no report for the consumption of bioethanol for fuel even though there is a regulation from the Ministry of Energy and Mineral Resources No. 12/2015 for using 5 percent ethanol (E5) as a gasoline blending in the year 2020. Recently, Pertamina, a national energy company, has taken the initiative to launch the A20 (alcohol 20 percent that consists of 15 percent methanol and 5 percent ethanol) to overcome the still-high price of ethanol. Besides fuel grade ethanol (FGE), industrial grade ethanol (IGE) consumption was about 100 million liters in 2019. Second generation bioethanol potency is about five million liters only from 44 million tons of oil palm empty fruit bunch yearly. The production of bioethanol, both first and second generations, is still promising in the future.