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Biofuel industry development in Indonesia.



Limited raw materials still become a constraint Constraint

A restriction on the natural degrees of freedom of a system. If n and m are the numbers of the natural and actual degrees of freedom, the difference n - m is the number of constraints.
 

At present, vegetable fuel development to replace fossil fuel fossil fuel: see energy, sources of; fuel.
fossil fuel

Any of a class of materials of biologic origin occurring within the Earth's crust that can be used as a source of energy. Fossil fuels include coal, petroleum, and natural gas.
 still continues. Biofuel bi·o·fuel  
n.
Fuel such as methane produced from renewable resources, especially plant biomass and treated municipal and industrial wastes.



bi
 will replace premium, diesel fuel, and kerosene kerosene or kerosine, colorless, thin mineral oil whose density is between 0.75 and 0.85 grams per cubic centimeter. A mixture of hydrocarbons, it is commonly obtained in the fractional distillation of petroleum as the portion boiling off  or petroleum. The government makes a target that between 2009 and 2010, composition of biofuel and fossil fuel will reach 15 percent compared to 85 percent.

The national need for vegetable fuel is at least 18 billion liter liter, abbr. l, unit of volume in the metric system, defined since 1964 as equal to 0.001 cubic meters, or 1 cubic decimeter. A cube that has each of its edges equal to 10 centimeters has a volume of 1 liter. The liter is equal to 1.057 liquid quarts, 0.  per year. However, limited raw materials is the main constraint because they must be shared with other industries.

The Head of National Team for Vegetable Fuel Development, Alhilal Hamdi, also declared that limited stock of one of the main raw materials of biofuel, namely ethanol ethanol (ĕth`ənōl') or ethyl alcohol, CH3CH2OH, a colorless liquid with characteristic odor and taste; commonly called grain alcohol or simply alcohol. , to fulfill ful·fill also ful·fil  
tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils
1. To bring into actuality; effect: fulfilled their promises.

2.
 the need for fuel became the main constraint. Ethanol available is competed over other industries. Ethanol in Indonesia is still used for alcohol industry or other industries like cigarette and plastic.

The same with another raw material of biofuel, namely Crude Palm Oil (CPO (Chief Privacy Officer) An individual who manages the privacy issues within an organization. Arising out of the privacy regulations in finance and health care in the late 1990s, the CPO position eventually crossed over to all industries. ), the current production is needed more to fulfill domestic for vegetable oil raw material than for biofuel production.

Jarak Pagar (Jatropha) is one of the raw materials of biofuel that is highly recommended by the government to be developed extensively in order to fulfill the need for biofuel raw materials. Availability of seeds and limited planting land are additional constraints CONSTRAINTS - A language for solving constraints using value inference.

["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)].
.

Small scale economic development among the community has not indicated significant profit level if compared to agribusiness agribusiness

Agriculture operated by business; specifically, that part of a modern national economy devoted to the production, processing, and distribution of food and fibre products and byproducts.
 activities in general like vegetables and fruits, thereby influencing the people's interest in developing Jarak pagar tree planting.

Uncompetitive selling price

In addition, one of the constraints in biofuel development in Indonesia is excessively high price compared to fossil fuel price. In fact, in the beginning biofuel use is expected to become alternative energy source that is inexpensive and environmentally friendly Environmentally friendly, also referred to as nature friendly, is a term used to refer to goods and services considered to inflict minimal harm on the environment.[1]  in order to replace fossil fuel that is getting more expensive.

Expensive selling price of biofuel also affects consumption level in the home country. Meanwhile, to enter export market, biofuel product are prevented by high import fee fixed by a number of destination countries amounting to 30 percent.

PT Bakrie Rekin Bio Energy, a joint venture of PT Bakrie Sumatera Plantations PLANTATIONS. Colonies, (q.v.) dependencies. (q.v.) 1 Bl. Com. 107. In England, this word, as it is used in St. 12, II. c. 18, is never applied to, any of the British dominions in Europe, but only to the colonies in the West Indies and America. 1 Marsh. Ins, B. 1, c. 3, Sec. 2, page 64.  Tbk. and PT Rekayasa Industri, is forced to postpone post·pone  
tr.v. post·poned, post·pon·ing, post·pones
1. To delay until a future time; put off. See Synonyms at defer1.

2. To place after in importance; subordinate.
 the production plan of 100,000 ton of biofuel that was originally targeted to be realized at end of 2008 until end of 2009.

Several biofuel producers hope that the government can help biofuel industry players in the home country by giving incentive in the form of subsidy subsidy, financial assistance granted by a government or philanthropic foundation to a person or association for the purpose of promoting an enterprise considered beneficial to the public welfare.  for biofuel sale in domestic markets. Because if the subsidy is given, biofuel selling price in domestic markets can automatically become more inexpensive than fossil fuel. Therefore, biofuel consumption level in the home country will increase in line with numerous consumers that move from using fossil fuel to biofuel.

Production Structure

Product description

Biofuel is renewable fuel that is produced from various vegetation vegetation /veg·e·ta·tion/ (vej?e-ta´shun) any plantlike fungoid neoplasm or growth; a luxuriant fungus-like growth of pathologic tissue.  raw materials (biomass), or side products of agroindustry, or recycled products from various wastes such as used vegetable oil, wood garbage garbage: see solid waste. , agricultural waste, and so forth.

Biofuel does not contain kerosene, but can be mixed with various products of crude oil to generate mixed fuel. Biofuel can be used in various types of engine without doing major changes. In addition, biofuel is environmentally friendly because it is biodegradable biodegradable /bio·de·grad·a·ble/ (-de-grad´ah-b'l) susceptible of degradation by biological processes, as by bacterial or other enzymatic action.

bi·o·de·grad·a·ble
adj.
, non toxic, and not containing sulphur Sulphur, city, United States
Sulphur, city (1990 pop. 20,125), Calcasieu parish, SW La.; inc. 1914. It is a trade center for an area producing natural gas, oil, and timber as well as sorghum, soybeans, cattle, and crawfish.
 and aromatic aromatic /ar·o·mat·ic/ (ar?o-mat´ik)
1. having a spicy odor.

2. in chemistry, denoting a compound containing a ring system stabilized by a closed circle of conjugated double bonds or nonbonding electron pairs, e.g.
.

Biodiesel

Biodiesel is diesel motor fuel in the form of ester alkyl/fatty acids alkyl alkyl /al·kyl/ (al´k'l) the monovalent radical formed when an aliphatic hydrocarbon loses one hydrogen atom.

al·kyl
n.
 (usually ester methyl methyl (mĕth`əl), CH3, organic free radical or alkyl group derived from methane by the removal of one hydrogen atom. ) produced from vegetable oil through trans or esterification es·ter·i·fi·ca·tion
n.
A chemical reaction resulting in the formation of at least one ester product.



es·teri·fied adj.
 process. Biodiesel can be produced from 100% biodiesel (B100) or mixed with diesel fuel originating from crude oil. Biodiesel can mix with diesel fuel and have better lubricating capacity. In addition, it has almost nil sulphur degree. Biodiesel type is determined by biodiesel content in the fuel.

Bioethanol

Bioethanol is a type of biofuel that contains ethanol at a certain level and can be mixed with fuel originating from crude oil.

Ethanol or ethyl alcohol ethyl alcohol: see ethanol.  (C2H5OH) is a colorless col·or·less  
adj.
1. Lacking color.

2. Weak in color; pallid.

3. Lacking animation, variety, or distinction; dull. See Synonyms at dull.
 liquid, biodegradable, contains low toxic content, and generates pollution. In addition, ethanol is high-octane fuel and can be used to increase octane oc·tane  
n.
1. Any of various isomeric paraffin hydrocarbons with the formula C8H18, found in petroleum and used as a fuel and solvent.

2. An octane number.
 level in crude oil fuel.

Ethanol can be produced from seeds such as corn, wheat, rice, and so forth. It can also be produced from non seeds such as cassava cassava (kəsä`və) or manioc (măn`ēŏk), name for many species of the genus Manihot of the family Euphorbiaceae (spurge family).  flour flour, finely ground, usually sifted, meal of grain, such as wheat, rye, corn, rice, or buckwheat. Flour is also made from potatoes, peas, beans, peanuts, etc. Usually it refers to the finely ground and bolted (i.e. , sugar, and wheat, and other organic materials containing carbon.

Biodiesel production Biodiesel production is the process of synthesizing biodiesel. Biodiesel is a liquid fuel source largely compatible with petroleum based diesel fuel. The most common method for its manufacture is synthesis by reacting a glyceride-containing plant oil with a short chain alcohol such  process

Biodiesel production from plants commonly performed is through a process called transesterification.

Transesterification is a chemical process exchanging alkoxy group In chemistry, the alkoxyl group is an alkyl group linked to oxygen thus: R-O. The range of alkoxy groups is as great, the simplest being methoxy (-OCH3). An ethoxy substituent is found in the organic compound phenetol, C6H5OCH2CH  in ester compound with alcohol. To accelerate this reaction, a catalyst is needed in the form of acid or base.

Oil producing plants contain much fatty acid fatty acid, any of the organic carboxylic acids present in fats and oils as esters of glycerol. Molecular weights of fatty acids vary over a wide range. The carbon skeleton of any fatty acid is unbranched. Some fatty acids are saturated, i.e. . Chemically, this fatty acid is glyceride glyceride /glyc·er·ide/ (glis´er-id) acylglycerol; an organic acid ester of glycerol, designated, according to the number of ester linkages, as mono-, di-, or triglyceride.

glyc·er·ide
n.
 compound. In transesterification process, this glyceride compound is broken into ester and glycerol glycerol, glycerin, glycerine, or 1,2,3-propanetriol (prō`pāntrī'ŏl), CH2OHCHOHCH2OH, colorless, odorless, sweet-tasting, syrupy liquid.  compound monomer monomer (mŏn`əmər): see polymer.
monomer

Molecule of any of a class of mostly organic compounds that can react with other molecules of the same or other compounds to form very large molecules (polymers).
, in addition to alcohol in a large quantity and catalyst.

Ester compound at a certain grade will become biodiesel. In transesterification process for biodiesel production from vegetation, sulphur acid (Chem.) See Sulphacid.

See also: Sulphur
 (H2SO4) is usually used as chemical reaction catalyst.

Besides transesterification process, biodiesel production also goes through the following phases: plant system compression (for example, seed) to generate crude oil; separation between ester and glycerine glycerine

see glycerin.
; and purification/washing of ester compound to generate fuel grade (biodiesel).

[ILLUSTRATION OMITTED]

Bioethanol production process

Bioethanol production is performed through conversion process of carbohydrate carbohydrate, any member of a large class of chemical compounds that includes sugars, starches, cellulose, and related compounds. These compounds are produced naturally by green plants from carbon dioxide and water (see photosynthesis).  into water soluble soluble /sol·u·ble/ (sol´u-b'l) susceptible of being dissolved.

sol·u·ble
adj.
Capable of being dissolved, especially easily dissolved.
 sugar (glucose). Conversion of raw materials from plants containing carbohydrate and sugar into bioethanol is presented in the following table.
                               Sugar                       Ratio of
                              content     Total result       basic
 Raw material                 in basic         of         material to
                              material     conversion     bio-ethanol

Type of plant     Consump-      (kg)      Bio ethanol
                    tion                    (liters)

Cassava              1,000    250-300            166.6         6.5:1
Sweet potato         1,000    150-200            125             8:1
Corn                 1,000    600-700            200             5:1
Sago                 1,000    120-160             90            12:1
Molasses             1,000        500            250             4:1

Source: BPPT


Bioethanol production process is divided into several phases namely, gelatination, saccharification, fermentation fermentation, process by which the living cell is able to obtain energy through the breakdown of glucose and other simple sugar molecules without requiring oxygen. Fermentation is achieved by somewhat different chemical sequences in different species of organisms. , and distillation distillation, process used to separate the substances composing a mixture. It involves a change of state, as of liquid to gas, and subsequent condensation. The process was probably first used in the production of intoxicating beverages. .

Raw materials of plants from which bioethanol will be produced are crushed and mixed with water so that it becomes pulp. The starch pulp is heated until it reaches 1300C for 30 minutes, and then, after it is cooled down until 550C, saccharification process is performed, namely breaking process of complex sugar into simple sugar or glucose (water soluble sugar).

It is continued with fermentation by using Saccharomyzes ceraviseze yeast yeast, name applied specifically to a certain group of microscopic fungi and to commercial products consisting of masses of dried yeast cells or of yeast mixed with a starchy material and pressed into yeast cakes.  to change glucose into ethanol/bioethanol.

In order to purify Purify - A debugging tool from Pure Software.  bioethanol to reach more than 95% degree so that it can be used as fuel, alcohol (ethanol/bioethanol) that has 40% purity Purity: see Pearl, The.
Purity
See also Modesty.

almond

symbol of the Virgin Mary’s innocence. [O.T.: Numbers 17: 1–11; Art: Hall, 14]

crystal

its transparency symbolizes pureness.
 must go through distillation process to separate alcohol from water.

[ILLUSTRATION OMITTED]

Product specification

Biodiesel specification generally refers to the standards in several countries in the world, especially the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire,  through American Society of Testing and Materials (ASTM ASTM
abbr.
American Society for Testing and Materials
) and Europe through European Committee for Standardization (CEN CEN - Conseil Européen pour la Normalisation.

A body coordinating standardisation activities in the EEC and EFTA countries.
).

ASTM specification in America is contained in ASTM D 6751 provisions on biodiesel quality specification. Meanwhile in Europe, biodiesel refers to the specification according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 EN 14214.

ASTM standard stipulates that biodiesel is a fuel that consists of mono (1) See monochrome and monophonic.

(2) (Mono) An open source implementation of the .NET environment for Linux, Unix and Windows platforms, sponsored by Novell. Mono includes a C# compiler and a Common Language Infrastructure (CLI) runtime engine.
 alkyl ester from fatty acid long chain, which is derived from vegetable oil/animal fat. Therefore, vegetable oil or animal fat that is not processed yet cannot be classified as biofuel.

The Indonesian government also stipulates national standard for biodiesel specification, as contained in SNI (1) (Subscriber Network Interface) The point of interface between the customer's equipment (CPE) and a communications service from a common carrier.

(2) (SNA Network I
 04-7182-2006.

For bioethanol specification, the government stipulates a standard based on SNI DT 27-000102006, which is determined by several parameters among others, density, liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts.

A type of proceeding pursuant to federal Bankruptcy
 point, carbon residue residue n. in a will, the assets of the estate of a person who has died with a will (died testate) which are left after all specific gifts have been made. Typical language: "I leave the rest, residue and remainder [or just residue] of my estate to my grandchildren. , water content, and so forth.

Biodiesel capability competes with petroleum diesel

As substitute of crude oil fuel, biodiesel has several superiorities, mainly higher Cetane number cetane number
n.
The performance rating of a diesel fuel, corresponding to the percentage of cetane in a cetane-methylnaphthalene mixture with the same ignition performance. A higher cetane number indicates greater fuel efficiency.
, lower emission level, higher flash point, excellent lubricating capacity.

Cetane number

Cetane number indicates delay in fuel ignition ignition, apparatus for igniting a combustible mixture. The German engineer Nikolaus A. Otto, in his first gas engine, used flame ignition; another method was heating a metal tube to incandescence. , where higher cetane number indicates a shorter time between fuel injection and fuel ignition. Higher cetane number is identical to easy start of engine in cold condition and smoother circulation of engine.

Emission level

For pure biodiesel (B100), its CO2 emission can be pressed down until 73%, methane methane (mĕth`ān), CH4, colorless, odorless, gaseous saturated hydrocarbon; the simplest alkane. It is less dense than air, melts at −184°C;, and boils at −161.4°C;.  emission can be reduced to 51%, non-burning hydocarbon may decrease by 67%, carbon monoxide carbon monoxide, chemical compound, CO, a colorless, odorless, tasteless, extremely poisonous gas that is less dense than air under ordinary conditions. It is very slightly soluble in water and burns in air with a characteristic blue flame, producing carbon dioxide;  emission decreases by 48% and sulphur oxide Noun 1. sulphur oxide - any of several oxides of sulphur
sulfur oxide

oxide - any compound of oxygen with another element or a radical
 can be pressed down until 100%, and other reductions of waste and potential pollution compared to petroleum diesel.

Flash point

Flash point is the point on which diesel fuel is burned after reaching a certain pressure in engine so that it is burned. Biodiesel has higher burning point than petroleum diesel so that it is relatively safer, because it is not easily burned due to lower pressure.

Lubricity lu·bric·i·ty  
n.
The quality or condition of being lubricious.



[Late Latin lbricit
 

Lubricating capacity of diesel fuel is very important, because it is highly influential on the capacity of engine for a long term, especially in maintaining the function of fuel injection component.

Biodiesel has a better lubricating capacity, since based on the specification of EPA EPA eicosapentaenoic acid.

EPA
abbr.
eicosapentaenoic acid


EPA,
n.pr See acid, eicosapentaenoic.

EPA,
n.
 2006, higher content of sulphur will decrease lubricating capacity of diesel fuel.

Behind this superiority, biodiesel has a shortcoming, namely its energy content is still below petroleum diesel, because the basic nature of ester it contains is different from petroleum diesel.

Development of biofuel industry at present

Brazil and United States of America are the biggest producers and consumers of bioethanol

At present, biofuel industry in the world is still dominated by bioethanol production that reaches about 700,000 barrel per day, meanwhile, biodiesel production is only about 75,000 barrel per day in 2006.

United States of America and Brazil are main producers and consumers of bioethanol in the world. Bioethanol production of the two countries reaches 80% of total world production. Bioethanol consumption by United States of America and Brazil reaches 75% of total world consumption.

Brazil has currently exceeded bioethanol production of the United States of America, which places the country as the largest producer of bioethanol in the world, with production that reaches 320,000 barrel per day.

Besides in the United States of America and Brazil, bioethanol has also developed rapidly in European Union countries, such as Germany, Spain, and Sweden. Meanwhile, Hungary, Lithuania, and Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north.  are new producers of bioethanol.

In Asia, bioethanol begins to develop in several countries among others, India, Thailand, China, Malaysia, and Indonesia.

Germany is the biggest producer and consumer of biodiesel

Biodiesel develops rapidly in Europe, with production that reaches 88% of total world production that reaches 75,000 barrel per day in 2006.

Germany is the largest producer and consumer of biodiesel in the world, with production almost 50% of total world production. Other main producers of biodiesel in Europe are France, Italy, Austria, Czech Republic, and Poland.

Riau and North Sumatera are potential areas of biofuel industry in Indonesia

Biofuel industry in Indonesia just enters initial development phase, since awareness of maintaining crude oil potentials and preparing new renewable energy New renewable energy is a relatively new term that is not used uniformly. Most commonly it refers to non-traditional renewable energy technologies such as solar energy, wind energy, small hydro and biomass.  sources have just been performed in the last two years.

Large-scale biofuel development project is being prepared by several national and multinational private companies in Indonesia.

The majority of biofuel plants currently still have a relatively small scale, because most of them are owned by several survey institutions as pilot projects.

In 2006, there were only 2 large-scale biodiesel plants in Indonesia, namely PPKS PPKS Keratosis Palmoplantaris Striata  in Medan and Eterindo in Gresik. For ethanol production, at present, there are 9 ethanol plants with total production capacity of 133,632 kiloliter kil·o·li·ter  
n. Abbr. kl
A metric unit of volume equal to 1,000 liters (1,056 liquid quarts).

Noun 1. kiloliter - a metric unit of volume or capacity equal to 1000 liters
, and some of them begin to produce in 2007.

Several large biofuel producers that begin to operate in 2007 integrate with oil palm plantation Plantation, city (1990 pop. 66,692), Broward co., SE Fla., a residential suburb of Fort Lauderdale; inc. 1953. The city has grown rapidly along with the development of S Florida.  among others, PT Musimas with capacity of 100,000 ton per year in North Sumatra North Sumatra (Indonesian: Sumatera Utara) is a province of Indonesia. Its capital is Medan. Geography and population
The province of North Sumatra stretches across the island of Sumatra between the Indian Ocean and the Strait Malacca.
 and PT Prajona Nelayan with capacity of 60,000 ton per year in Riau.

At present, the Indonesian government has determined Dumai, Riau, as the largest biodiesel development center in Indonesia, considering abundant supply of raw materials among others, oil palm in this area, and supported by availability of port facility and existence of the largest biofuel processing plant, namely PT Wilmar Bioenergi with production capacity of 350,000 ton per day.

The need for biofuel triggers increase in ethanol production

The increasing need for biofuel also encourages the development of ethanol industry in Indonesia. At present, there are 9 companies with total production capacity of 133,632 kiloliter.

From these 9 companies, only 2 of them producing ethanol with specification for fuel/bioethanol, namely PT Bukitmanikam Subur Persada in Lampung and PT Indo Acidama Chemical in Surabaya. Total production capacity of these companies reach 93,282 kiloliter per year.

Economic aspects of biofuel

The government through the National Team for biofuel fuel Development has estimated investment cost that must be spent for biofuel development in Indonesia until 2010, with attainment of targeted use of 10% biodiesel and 5% bioethanol, is Rp 200 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time.

(mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed.

In the USA and Canada, 10^12.
.

The investment cost includes construction of infrastructures, such as roads and seaport, biofuel plant, development of oil palm, jarak, sugarcane, corn, cassava plantations, and so forth, that constitute raw materials of biofuel and development of technology and human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. .

Investment and production cost of biodiesel plant

In order to attain the government's target of 10% biodiesel use in total consumption of fuel in Indonesia in 2010, there must be biodiesel production of 2.41 million kiloliter available (about 2.12 million tons).

Therefore, if average production capacity of biodiesel plant is 60,000 ton, about 35 biodiesel processing plants will be needed in 2010 to serve domestic needs.

Referring to the research of Palm Oil Institute, the construction of biodiesel processing plant with oil palm as raw material requires investment of Rp 2 million per ton, outside the cost for oil palm plantation development.

The construction of 35 biodiesel processing plants requires investment cost of about Rp 4.2 trillion and oil palm planting area extending 630,000 hectare hectare (hĕk`târ, –tär), abbr. ha, unit of area in the metric system, equal to 10,000 sq m, or about 2.47 acres. .

Raw material is the largest component in biodiesel production cost

CPO raw material is the largest component in biodiesel production cost structure, because from biodiesel production cost per liter for a plant with capacity of 60,000 ton, 84% of it is CPO raw material cost.

For a plant with capacity of 60,000 ton per year, the production process cost reaches Rp 700/liter and raw material cost (CPO) reaches Rp 3,666/liter. With this condition, total biodiesel cost per liter reaches the price at Rp 4,366. Therefore, with selling price of Automotive Diesel Oil (ADO) at Rp 5,300, the gross margin thereof reaches Rp 934/liter or 17.6% of the selling price.

Production engine is the largest investment of bioethanol plant

Based on the research of BPPT BPPT Agency for the Assessment and Application of Technology, Indonesia , investment cost for the construction of bioethanol processing plant consists of production engine, supporting equipment, waste treatment, power generator, and land and building.

For the construction of bioethanol plant with production capacity amounting to 8,000 liter per day or 2.56 million liter per year, investment cost amounting to US$ 7.38 million is required, where 76% thereof is procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases.  cost of main production engine.

Component of bioethanol production cost is based on cassava

BPPT surveys production cost structure in bioethanol production by using cassava that reaches total cost of Rp 2,400/liter.

In order to produce 1 liter of bioethanol, 6.5 kg of cassava is required, at average price of Rp 180 per kg, therefore, the cost of cassava in bioethanol production is Rp 1,170 or almost 50% of total production cost per liter.

In addition to the main raw materials, namely cassava, in the conversion of plants containing starch or carbohydrate into bioethanol, supporting materials of glucose production process and glucose fermentation process into ethanol are also required. Production cost of ethanol per liter is total use cost of raw materials, supporting materials, and utilities.

CPO and Jatropha are main raw materials of biodiesel

Crude Palm Oil (CPO)

Indonesia is the largest CPO producer in the world, and together with Malaysia supply about 85% of the world need for Palm Oil.

Indonesia and Malaysia will allocate 40% of their production for biodiesel development, because of increasing need for biofuel at present. Rapid increase in the need for palm oil-based biodiesel in Europe, encourages Indonesia and Malaysia to increase their palm oil production.

In Indonesia at present, there are hundreds of oil palm plantation companies, and almost all major oil palm plantation companies have their own CPO processing facilities. Meanwhile, small companies sell their products in the form of hands of fresh fruits, which are sold to CPO processing companies.

Although there is a considerable number of oil palm plantations in Indonesia, palm oil industry is still dominated on the whole by some major domestic and foreign companies only.

Indonesia determines that in 2009, it will take over the position of Malaysia as the biggest palm oil producer in the world and in 2015, the biggest palm oil exporter.

The majority of oil palm planting area are situated in Sumatera, namely Riau and North Sumatera, and Kalimantan. From total 6.075 million hectare of oil palm planting area in Indonesia, 24% is in Riau and 17.2% in North Sumatera, meanwhile the total planting area in Kalimantan reaches 19.4%.

In addition to the planting area extent that keeps increasing, CPO production indicates a gradual increase as well. It is recorded that in 2001, CPO production reached 8,396,472 ton, and then increased in 2002 to 9,622,345 ton, and continuously increased to 13,390,807 ton in 2006.

Palm oil is the main raw material of biodiesel. The industry thereof is currently controlled by several business groups, both government (Nusantara Group Plantation), national private, and foreign companies. Malaysia is a country that has made a major investment in oil palm in Indonesia, through its business groups.

Jatropha Curcas Jatropha curcas or Barbados nut or Physic nut is a poisonous shrub belonging to the Euphorbiaceae or spurge family. The plant, originating in Central America, is mainly grown in Asia and in Africa, where it is known as Pourghère.  

Jatropha Curcas is a species of plant that becomes alternative raw material for biodiesel production, because of limited availability When customers of the PSTN make telephone calls, they commonly make use of a telecommunications network called a switched-circuit network. In a switched-circuit network, devices known as switches are used to connect the caller to the callee.  of palm oil that is also raw material for various products of food, cosmetic cosmetic /cos·met·ic/ (koz-met´ik)
1. pertaining to cosmesis.

2. a beautifying substance or preparation.


cos·met·ic
n.
, and so forth, and export quality products in the form of CPO, it becomes a relatively expensive raw material for biodiesel production.

Jatropha can be processed simply by extracting its seeds to be changed into high quality biodiesel with a relatively inexpensive processing cost.

Jatropha grows normally until 3-5 meter high in many regions in Indonesia among others, Kalimantan, Sumatera, Java, and Papua, although the land condition is different from one another.

This plant can also grow normally in a damaged land due to over cultivation cultivation, tilling or manipulation of the soil, done primarily to eliminate weeds that compete with crops for water and nutrients. Cultivation may be used in crusted soils to increase soil aeration and infiltration of water; it may also be used to move soil to or , although the productivity thereof is relatively lower than the one planted in fertilized fer·til·ize  
v. fer·til·ized, fer·til·iz·ing, fer·til·iz·es

v.tr.
1. To cause the fertilization of (an ovum, for example).

2.
 soil.

Development of Jatropha is the government's target to be performed by farmers and village people, and the government has allocated Rp 1 trillion to help farmers and village people to plant Jatropha more, in order to attain production target of more than 15,000 ton of biofuel from Jatropha at end of 2007.

Sugarcane and cassava are main raw materials of bioethanol

In Indonesia, bioethanol is produced from various raw materials among others, sugarcane, cassava, corn, potato, and so forth. Sugarcane and cassava are main raw materials that are currently used to produce bioethanol, because not only the productivity per hectare is the highest, but the planting period is relatively short as well.

The research of BPPT indicated that in order to produce 1 liter of bioethanol, 15 kg of sugarcane is required, whereas for cassava, 6.5 kg only.

Although, sugarcane is needed more to produce 1 liter of bioethanol, the productivity of sugarcane per hectare is far higher, namely 80 ton/hectare, whereas cassava is only 25 ton per hectare.

Sugarcane

Sugarcane planting area in Indonesia in 2006 has reached 433,332 hectare, which the majority thereof is situated in East Java East Java (Indonesian: Jawa Timur) is a province of Indonesia. It is located on the eastern part of the island of Java and also includes neighboring Madura and Bawean islands.  and Lampung.

The development of sugarcane planting area is relatively stagnant stagnant /stag·nant/ (stag´nant)
1. motionless; not flowing or moving.

2. inactive; not developing or progressing.
 since the last 8 years, with area extent ranging from 340,000 hectare. The extent of sugarcane plantation area began to increase in 2004, which reached 344,793 hectare, higher than the previous year, which reached 335,735 hectare.

In 2005, the extent of sugarcane planting area increased quite significantly compared to 2004, as of the government's proclamation An act that formally declares to the general public that the government has acted in a particular way. A written or printed document issued by a superior government executive, such as the president or governor, which sets out such a declaration by the government.  of targeted self-supporting in sugar in 2009.

Cassava

Cassava is a potential raw material for bioethanol production. Its easy planting and care and growing capacity in various types of soil, make this plant a superior plant to be developed by people in rural areas, including in critical soil with low fertility rate Noun 1. fertility rate - the ratio of live births in an area to the population of that area; expressed per 1000 population per year
birth rate, birthrate, fertility, natality
.

Lampung is the largest cassava planting area in Indonesia with the extent of 298.48 million hectare, followed by East Java 241.2 million hectare and West Java 215.52 million hectare.

Waste cooking oil is another potential of raw material for biodiesel

Waste cooking oil is a waste and if viewed from the chemical composition thereof, it contains carcinogenic carcinogenic

having a capacity for carcinogenesis.
 compounds, which occur during the frying process. Continuous use of waste cooking oil can damage human health, and cause cancer disease.

Therefore, appropriate handling is required so that waste cooking oil can be useful and not inflicting a loss from human health and environmental aspects.

One of cooking oil waste benefits is to change it chemically into biodiesel. This can be performed because cooking oil waste is vegetable oil as well, derived from CPO (crude palm oil). Biodiesel production from cooking oil waste applies transesterification reaction as in biodiesel production in general, with pretreatment pretreatment,
n the protocols required before beginning therapy, usually of a diagnostic nature; before treatment.

pretreatment estimate,
n See predetermination.
 to decrease acid point in cooking oil waste.

The following is comparison of emission generated by biodiesel from cooking oil waste (Altfett Methyl Ester/AME) and diesel oil (ADO):

The table reveals that biodiesel from cooking oil waste is alternative fuel that is environmentally friendly like biodiesel from other vegetable oil. The emission gas test result indicates that AME See AIT.  has lower degree of emission gas than diesel fuel.

Biodiesel from cooking oil waste also fulfills SNI requirements for biodiesel. The following is laboratory test on comparison of various parameters between biodiesel from cooking oil waste and diesel fuel, and SNI requirements for biodiesel:
Physical nature             Unit          Result

Flash point                 [degrees]C       170
Viskositas (40[degrees]C)      cSt.          4.9
Bilangan setana                 -            49
Cloud point                 [degrees]C       3.3
Sulfur content                % m/m          <<>
Calorific value               kJ/kg        38,542
Density (15[degrees]C)         Kg/l         0.85
Gliserin bebas                 Wt.%         0.00

                             Standard      SNI of
                               ASTM       Biodiesel
Physical nature             (Diesel oil)

Flash point                  Min. 100     Min. 100
Viskositas (40[degrees]C)    1,9-6,5       2.3-6.0
Bilangan setana              Min. 40       Min. 48
Cloud point                     -          Max. 18
Sulfur content               0.05 Max     Maks.0.05
Calorific value               45.343         --
Density (15[degrees]C)         0,84       0.86-0.90
Gliserin bebas              0.02 Max.     Max. 0.02

Source: BPPT


However, the main problem is difficult accumulation of cooking oil waste, because besides the distribution thereof is quite extensive and uneven, keeping cooking oil waste has not become the people's life habit, because the cooking oil waste is frequently rejected to the rivers or drainage, so that it can become one of the pollution sources in the rivers.

Therefore, support from the central government and regional government is required to handle cooking oil waste to become biodiesel, as already performed by the government of Guangzhou, China. Guangzhou is the third biggest city in China that has succeeded in processing cooking oil waste amounting to 20,000 ton per year into biodiesel because of local government's support (Y Wang et al, 2006).

Therefore, cooking oil waste use as diesel fuel is a method of waste (cooking oil wast wast  
v. Archaic
A second person singular past tense of be.
) dumping that generates economic value and creates alternative fuel for diesel engine that is ethical, economical, and ecological ecological

emanating from or pertaining to ecology.


ecological biome
see biome.

ecological climax
the state of balance in an ecosystem when its inhabitants have established their permanent relationships with each
.

Domestic market need is dominated by biodiesel

The Ministry of Energy and Mineral Resources has prepared a Road Map on biofuel development and projection on biofuel needs in 2005-2025.

The need for biofuel is dominated by biodisel, which is projected to reach 2.41 million kiloliter in 2010, whereas bioethanol will reach 1.48 million kiloliter. The need originates from 40% of needs in transportation sector and 74% in industry and power generator sectors.

Europe is potential market of biodiesel

Although the development of biofuel industry in Indonesia is given priority to fulfill domestic market need, export market potential is not ignored by investors, since export markets such as Europe and America have been established with quite considerable need. At present, biofuel use reaches 1% of liquid fuel consumption for the world's transportation sector, especially Europe, North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. .

Europe is a prospective export market for biodiesel product, because of numerous uses of cars with diesel fuel, and almost 80% of biodiesel use in Europe is for transportation sector. In addition, European market keeps experiencing a lack of biodiesel supply because of limited land extent for development of biodiesel raw material.

At present, about 2% of agricultural land in Europe is planted with plants for biofuel raw materials among others sunflower sunflower, any plant of the genus Helianthus of the family Asteraceae (aster family), annual or perennial herbs native to the New World and common throughout the United States. . European Union production target for biofuel is about 24 million ton per year. This amount will require 15-18 million hectare of agricultural land or 15-17% of total 103.6 million hectare of land in European Union. The considerable extent of land use for biofuel raw materials makes the European Commission plan that they will only produce 50% of their need for biofuel and the remaining will be imported.

Biofuel distribution and sale

Pertamina is the only biofuel distributor at present

As state-owned companies, PT Pertamina and PT PLN PLN

In currencies, this is the abbreviation for the Polish Zloty.

Notes:
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion.
 are stipulated as permanent buyers/standby offtakers and obliged to purchase biofuel production from producers that will reach about 23,000 production units in 2010. Until now, Pertamina is the only party allowed to sell and distribute biofuel in Indonesia. Pertamina must gradually replace crude oil fuel with biofuel, especially for transportation need.

Marketing Division Head of PT Pertamina (Persero), Djaelani Soetomo in Surabaya explained that until now, biosolar purchase could be served in just 201 gas stations (SPBU) in Jakarta, Bogor, Depok, Tangerang, Bekasi with average selling volume of 3,600 kiloliter (kl) per month.

Whereas in Surabaya, the sale of biosolar that is a mixed product between 95 percent of diesel fuel and 5 percent of CPO can only be found in 15 gas stations. Average selling volume per month is about 1,650 kl.

In the whole country, biopremium that is a mixed product of 97 percent of pure premium and 3 percent ethanol can only be found in gas station 54 651 43 at Jalan Mayjen Wiyono, Blimbing Sub-district, Malang Regency Regency, in British history, the period of the last nine years (1811–20) of the reign of George III, when the king's insanity had rendered him unfit to rule and the government was vested in the prince of Wales (later George IV) as regent. , East Java, with average selling volume of 320 kl per month.

Meanwhile, biopertamax (consisting of 3 percent of ethanol and 97 percent of pure pertamax), which was marketed only in four gas stations in Jakarta, starting from June 11, 2007, was expanded to five gas stations in Surabaya and three gas stations in Malang. Average selling volume is about 10 kl per day in Jakarta and predicted about 5 kl per day in Surabaya and Malang.

Biofuel distribution target by Pertamina

Since the distribution of several biofuel products in 2006, Pertamina continues to distribute the products in order to attain a composition of 10% biofuel in fuel-based oil mixture according to the government's policy.

Pertamina's target in 2008 is to attain distribution of Biodiesel (B5) and Biopremium (E5) for transportation needs in 2 big cities in Java, and Biopertamax (E5) for 4 big cities in Java and Bali.

Subsequently, in 2009-2010 Pertamina targets the attainment of distribution of Biodiesel (B10) for 5 big cities in Java, and fulfillment ful·fill also ful·fil  
tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils
1. To bring into actuality; effect: fulfilled their promises.

2.
 of 5% of need in industrial sector and 5% in power generating sector.

Pertamina's target in 2011- 2012 is to attain distribution of Biodiesel (B10) for transportation needs in big cities in Java, Sumatera, and Kalimantan, and can fulfill 10% of need in industrial sector and 10% in power generating sector.

Biofuel sale is still in initial phase

Since the launch of biodiesel product in 2006, biofuel sale is currently still relatively small or about 14% of potential need for biofuel if mixture of 10% biofuel is attained in 2011-2012. The current sale reached 595,000 kiloliter of biosolar from May 2006 to August 2007, which was sold in 213 gas stations in Jakarta and Surabaya.

Biopremium that was sold only in Malang, East Java, was sold amounting to 4,200 kiloliter from one gas station. Meanwhile, Biopertamax was sold amounting to 4,300 kiloliter in Jakarta, Surabaya, and Malang.

22 Power Plants of PLN (State Power Company) use biofuel

As one of standby standby Medtalk adjective Referring to the immediate availability of a certain specialist–anesthesiologist, surgeon, who can be deployed in a medical emergency. Cf Concurrent.  offtakers appointed by the government together with Pertamina, PT PLN begins to use biofuel in some of its power plants that use diesel fuel. PLN plans to use vegetable fuel (BBN (BBN Technologies, Cambridge, MA, www.bbn.com) A consulting firm that participated in the development of some of the most extensive networks in the world, including ARPANET, which evolved into the Internet. It was founded in 1948 as a consulting service in acoustics by Dr. ) or biofuel for 114 of its small power plants throughout Indonesia. Vegetable fuel will replace diesel fuel that has been used by PLN all this time to activate diesel-powered electric generator (PLTD). 114 small power plants are situated outside Java Island and 22 of them have begun to operate with biofuel starting from 2007.

Foreign gas stations will be allowed to purchase and sell biofuel

The government will in a short time allow foreign gas stations such as Petronas Malaysia and Shell Netherlands to get involved in biofuel distribution in order to encourage competition in domestic markets.

The Deputy for Agriculture and Marine Affairs in the Coordinating Minister for Economy, Bayu Krisnamurti, said that foreign companies would be allowed to buy biofuel from producers and can sell it again to the people, provided that it is used for transportation sector.

All this time, many investors are not interested yet in developing biofuel plant, because they are afraid that Pertamina will buy their products at low price. The permission for parties outside Pertamina to purchase and sell biofuel will encourage investors to improve production capacity of biofuel plant, because there will be a competition in the sale of biofuel plants' products, thereby creating a reasonable price.

Rapid growth in quantity and capacity of biofuel plants will encourage production target attainment of 13 million ton of biofuel per year in 2009.

Development of biofuel price in the world

Development of biofuel price in the world is presented in the following table:

Development of biofuel price in Indonesia

Until now, biofuel selling price in Indonesia, mainly biodiesel, is still higher than the price of crude oil, because almost all raw materials for biodiesel production still use CPO (crude palm oil) that the price thereof in the world keeps increasing now.

The high need for CPO by various industrial sectors in the home country encourages the high price of CPO. Meanwhile, the use of other raw material like Jarak Pagar (Jatropha Curcas) is still very limited, because it is just developed and the distribution thereof is not as extensive as oil palm plantation.

The price of biopremium is relatively lower than that of biosolar, in which the difference of price between biopremium and premium from crude oil is only Rp 9/ liter, whereas the difference of price of biosolar is Rp 52/liter from the price of ADO.

Government policies

Several government policies concerning biofuel industry are contained in a number of instructions and decrees of the President and decrees of the Minister of Energy and Mineral Resources and Directorate General of Oil and Natural Gas issued in 2006.

The government supports biofuel development

The Indonesian government has stipulated a policy on national energy in the Instruction of the President No. 05 of 2006, as a direction for arrangement of national energy.

This policy targets reduction of energy use from crude oil, so that the contribution thereof will only reach about 20%, and improvement in non-fossil energy use, by increasing contributions from biofuel, geothermal energy geothermal energy: see energy, sources of.
geothermal energy

Power obtained by using heat from the Earth's interior. Most geothermal resources are in regions of active volcanism.
, and other renewable energies in mixed energy in 2025.

The government has allocated Rp 13 trillion and 500,000 hectare of land for biofuel development in 2008. From this amount, Rp 10 trillion will be used for development of infrastructures, such as irrigation irrigation, in agriculture, artificial watering of the land. Although used chiefly in regions with annual rainfall of less than 20 in. (51 cm), it is also used in wetter areas to grow certain crops, e.g., rice.  system and road access to the development area of biofuel raw material plantation. The national banking will financially support in the form of loan granting until Rp 20 trillion for this industry development.

The government suggests that biofuel industry should have its own raw material plantation, mainly oil palm, in order to avoid raw material fight with other industries, so that there is guarantee for biofuel industry development.

The government prepares tax incentive and biofuel investment

The Minister of Finance is preparing incentive package now to support the government's support to produce 200,000 barrel of biofuel per day in 2010. The planned incentive will consist of tax reduction and subsidy granting in loan interest.

Based on the incentive planning, tax reduction will be given during the first year of the company's operation for biofuel production and raw material production. Meanwhile, loan interest subsidy Interest subsidy

The value of a firm's deduction of the interest payments on its debt from its earnings before calculation of its tax bill under current tax law.
 will be performed so that investors do not pay loan interest more than 10% per year.

In order to overcome lack of energy source due to decreasing crude oil production, the government triggers investment for alternative energy development, both for domestic investment (PMDN PMDN Penanaman Modal Dalam Negeri ) and foreign investment (PMA PMA (papillary-marginal-attached),
n a system of epidemiologic scoring of periodontal disease devised by Schour and Massler in which the symbols denote the areas involved in gingival inflammation.

PMA Progressive muscular atrophy
).

In January 2007, the government has signed 58 investment agreements with the value of US$ 12.4 billion from 59 foreign and local investors, for the development of oil palm plantation and processing facility thereof. The foreign investors are among others Chinese oil company, CNOOC CNOOC China National Offshore Oil Corporation , which will make investment of US$ 5.5 billion cooperating with Sinar Mas Agro Resources, and Malaysia through Genting Biofuel Asia will make investment of more than US$ 3 billion in this industry.

Main players of biofuel industry in Indonesia

Eterindo Group

PT Eterindo Wahanatama Tbk is a holding company engaged in chemical industry. The company that went public in 1992 keeps spreading its business wings until it owns a number of subsidiaries that are also engaged in chemical industry sector.

Eterindo controls shares in several subsidiaries that are also engaged in chemical industry and produce biodiesel. Several groups of companies that produce biodiesel among others, PT Eternal Buana Chemical Industries, PT Eterindo Nusa Graha, and PT Anugerahinti Gemanusa.

Eterindo Group is an integrated chemical industry. Several chemical products of Eterindo Group are Phthalic Anhydride phthalic anhydride
n.
A white crystalline compound prepared by oxidizing naphthalene and used in the manufacture of phthaleins and other dyes.
, Plasticizers plasticizers

mostly triaryl phosphates, such as tricresyl, triphenyl phosphates, which are poisonous. See also triorthocresyl phosphate.
, Unsaturated unsaturated /un·sat·u·rat·ed/ (un-sach´ur-at?ed)
1. not holding all of a solute which can be held in solution by the solvent.

2. denoting compounds in which two or more atoms are united by double or triple bonds.
 Polyester polyester, synthetic fiber, produced by the polymerization of the product formed when an alcohol and organic acid react. The outstanding characteristic of polyesters is their ability to resist wrinkling and to spring back into shape when creased.  Resins resins,
n.pl complex, insoluble, sticky substances secreted by plants. Used as astringents, antimicrobials, and antiinflammatories, and are burned as incense. Can cause oral ulcers and epidermal irritations.
, Alkyd/Amino Resins, and Synthetic Latex Resins. As we know, Phthalic Anhydride is a raw material to produce Dioctyl Phthalate Phthal´ate

n. 1. (Chem.) A salt of phthalic acid.
 (DOP DOP

In currencies, this is the abbreviation for the Dominican Republic Peso.

Notes:
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion.
).

Since 2005, Eterindo established biofuel industry with CPO raw material in its plant in Gresik, East Java. In its initial production, biofuel capacity was just 120,000 ton per year. According to the plan, Eterindo will increase its biofuel capacity to 350,000 ton per year in 2007. At present, biodiesel product of Eterindo is mainly for industrial consumption, whereas for automotive sector is being prepared, because special try-out should be performed. In addition, it must wait for biodiesel commercial order from the government and biodiesel quality standardization.

Molindo Raya

PT Molindo Raya engaged in fermentation industry is a main Ethanol producer in Indonesia. With installed capacity of 40,000 Kl/day (330 working days per year), its operating capacity is [+ or -] 35,000 Kl/year.

The main raw material used is Molasses molasses, sugar byproduct, the brownish liquid residue left after heat crystallization of sucrose (commercial sugar) in the process of refining. Molasses contains chiefly the uncrystallizable sugars as well as some remnant sucrose.  from sugar factories in East Java. In order to guarantee continuous operation of Ethanol industry because molasses supply is only performed in sugarcane press season, PT Molindo Raya has provided molasses collecting tank with capacity of [+ or -] 50,000 ton as Buffer Stock when sugar factories are not operating.

PT Molindo Raya produces Ethanol with super prime quality with purity:

97% v/v--Super Quality

96.5% v/v--Prime Quality

95% v/v--Technical Grade Quality

99.9% v/v--Absolute Ethanol

The majority of this product is to fulfill domestic need and the remaining is to fulfill export market need. Domestic use of Ethanol is commonly used in the following industries:

* Cosmetic & Perfume perfume, aroma produced by the essential oils of plants and by synthetic aromatics. The burning of incense that accompanied the religious rites of ancient China, Palestine, and Egypt led gradually to the personal use of perfume.  Industry

* Beverage Industry

* Cigarette Industry

* Pharmaceutical, Medical Doctor, Traditional Medicine Industries

* Paint, Printing, and Solvent solvent, constituent of a solution that acts as a dissolving agent. In solutions of solids or gases in a liquid, the liquid is the solvent. In all other solutions (i.e.  Industries

* Raw materials of Acetate acetate (ăs`ĭtāt'), one of the most important forms of artificial cellulose-based fibers; the ester of acetic acid. The first patents for the production of fibers from cellulose acetate appeared at the beginning of the 20th cent.  Acid, Ethyl Acetate ethyl acetate
n.
A colorless volatile flammable liquid, CH3COOC2H5, used in perfumes, flavorings, lacquers, pharmaceuticals, and rayon and as a general solvent.
, and Acrylic acrylic, artificial fiber made from a special group of vinyl compounds, primarily acrylonitrile. Acrylic fibers are thermoplastic (i.e., soften when heated, reharden upon cooling), have low moisture regain, are low in density, and can be made into bulky fabrics.  

* and so forth.

* Molindo has developed biofuel from molasses since three years ago. At present, Molindo produces ethanol for motor vehicle fuel amounting to 10,000 kiloliter per year.

PT Molindo will increase pure ethanol production from 40,000 kiloliter to about 60,000 to 70,000 kiloliter per year. Pure ethanol is ethanol with 96.5% degree. Ethanol of this type is used for industry. Meanwhile, Ethanol Absolute production with 99.9% degree that is used for biofuel is not yet improved because there is no increase in demand yet from Pertamina.

Wilmar Group

Wilmar Group Plantation is a PMA (foreign investment) company that constitutes a business group engaged in agribusiness of oil palm plantation sector spread in Sumatera and Kalimantan. Biodiesel plant of Wilmar Group is situated in Dumai, Riau, with production capacity of 350 thousand MT per year.

This plant is operated by PT Wilmar BioEnergi Indonesia (WBI (WeB Intermediaries) A technology from IBM that provides a framework for intermediate processing between the user's browser and the Web server. WBI provides a middleware standard that can be used for password and privacy management, for transcoding from one format to ). WBI is a subsidiary of which 100% shares are owned by Wilmar International Ltd. and it was established on July 20, 2006 with issued and paid up capital amounting to US$ 5 million. The main activity of WBI is to produce and market biodiesel from oil palm. Investment to establish the plant was US$ 20 million and it started operating in January 2007.

Wilmar will increase its production capacity by constructing two plants more, each will have capacity of 350 thousand MT per year. With total investment of about US$ 35 million. With the two new plants, total production capacity will increase to 1.05 million MT per year.

In addition, Wilmar Group will also hold an acquisition on 5 companies of oil palm plantation in Kalimantan, namely PT Daya Landak Plantations, PT Indoresins Putra Mandiri, PT Pratama Prosentindo, PT Putra Indotropical, and PT Tri Tunggal Sentra usaha Buana. From the acquisition on these five companies, the landbank thereof will increase to 85 thousand hectare, with acquisition value of US$ 5,842,386.

Sumi SUMI Software Usability Measurement Inventory (measures software quality from the user's point of view)  Asih

PT Sumi Asih was established in 1982 and started producing in 1984, by producing Oleochemical Oleochemicals are chemicals derived from biological oils or fats. They are analogous to petrochemicals which are chemicals derived from petroleum. The hydrolysis or alcoholysis of oils or fats form the basis of the oleochemical industry.  with Palm Oil as raw material, with production capacity of 84,000 Metric Ton (MT) per year. Biodiesel has been developed by PT Sumi Asih since March 2006 with production capacity of 3,000 ton of biodiesel per month, and then the production capacity was increased to 5,200 ton per month, so that total capacity of biodiesel reached 8,200 ton per month or about 100,000 ton per year.

Starting from April 2007, PT Sumi Asih Oleo Chemical Industry has been performing export sale of biodiesel to the United States of America. The President Director of PT Sumi Asih, Alexius Darmadi, said that his company has acquired biodiesel sale contract to Houston, United States of America, starting from May 2006. In order to realize biodiesel export target, Sumi Asih, has made investment of about 15 million US dollar. This company is also preparing the development of biodiesel plant in Lampung. Investment for the plant with production capacity of 200,000 ton of biodiesel per year is calculated to reach 27 million US dollar.

New investment plan

Palm oil is still relied for biodiesel development

The increase in the world CPO price is bad news for biodiesel producers that depend on palm oil as raw material, because not only reduction of supply in the home country because of increase in CPO export sale, there is also keen competition with other industrial sectors using CPO as raw material.

This condition encourages major investors to invest in biofuel industry based on oil palm, resulting in plants integrated with CPO industry. Although at present, biofuel competitiveness is lower than oil-based fuel, the business activity thereof can continue because of high selling price of CPO.

PT Asian Agro is a company that will develop biodiesel with planned capacity of plant of 150,000 ton/year. Bakrie Group that will make investment in biofuel industry will invest about 25 million US dollar in the construction of its plant, and will develop thousands of hectares of oil palm plantation to supply raw material needs.

Wilmar Group that has developed biofuel industry with production capacity of 350,000 ton/year in Dumai, Riau, will develop its industry to several regions in Sumatera and Kalimantan, with production capacity target of 1,000,000 ton/year.

Foreign and local companies will compete in bioethanol development

Several groups of major local and state-owned companies will immediately compete with foreign companies that are interested in developing bioethanol industry in Indonesia.

Several local players that will develop this industry are Salim Group The Salim Group is Indonesia's big­gest conglomerate with assets including Indofood Sukses Mamur, the world's largest instant noodle producer, and Bogasari, a larg­e flour-milling operation [1]. The group was founded by Sudono Salim. , which plans to develop 70,000 hectare of sugarcane planting, with 70,000 kiloliter of production capacity, and Sampoerna group that will construct bioethanol plant with production capacity of 375,000 kiloliter per year, in Madiun, Jawa Timur.

Medco Group that continues to develop as an energy company, will immediately build bioethanol industry in Lampung, West Java, and Kalimantan with extent of about 50,000 hectare, and production capacity planned to reach 270,000 kiloliter.

Several PTPN PTPN Physical Therapy Provider Network
PTPN Protein-Tyrosine Phosphatase, Nonreceptor-Type
PTPN Preemptive Time Petri Net
 based on sugarcane will also develop bioethanol among others PTPN 2,8,9,10,11,14 in North Sumatra, Lampung, South Sulawesi South Sulawesi is a province of Indonesia, located on the western southern peninsula of Sulawesi island. The province is bordered by Central Sulawesi province to the north, South East Sulawesi province to the east and West Sulawesi province to the west (West Sulawesi province was , Java, and East Nusa Tenggara East Nusa Tenggara (Indonesian: Nusa Tenggara Timur) is a province of Indonesia, located in the eastern portion of the Lesser Sunda Islands, including West Timor. The provincial capital is Kupang, located on West Timor. .

Biofuel development prospect

The government's target in biofuel development is to increase the use percentage of biofuel in national mixed energy until 5% in 2025. Therefore, the dependence on fossil fuel as the main supplier of energy source can be gradually reduced. This is to anticipate the depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able  of crude oil and coal reserves and reduce exhaust gas Exhaust gas is flue gas which occurs as a result of the combustion of fuels such as natural gas, gasoline/petrol, diesel, fuel oil or coal. It is discharged into the atmosphere through an exhaust pipe or flue gas stack.  emission from the remaining hydrocarbon hydrocarbon (hī'drōkär`bən), any organic compound composed solely of the elements hydrogen and carbon. The hydrocarbons differ both in the total number of carbon and hydrogen atoms in their molecules and in the proportion of hydrogen  burning. The reduction of crude oil use will lower the government's subsidy with the value of Rp 60.6 trillion in 2006, because until now, 43% of fossil fuel need is still imported.

The increase in the use of biofuel will trigger the development of plants and plantations of oil palm, Jarak Pagar, sugarcane, cassava, and other biofuel raw materials, which will then improve the need for human resources.

Oil palm still becomes the most reliable commodity of biofuel raw material. Therefore, in 2010, it is projected that 1.5 million hectare of new planting area will develop, with potential production estimated to reach 6 million ton of biodiesel and will use more than 750,000 trained and untrained workers. Biofuel development based on oil palm will invite investment of about Rp 55 trillion for on farm and off farm developments.

Conclusion

The depletion of fossil energy source reserve in Indonesia and in the world, make humans realize more on the importance to prepare a substitute energy source.

Biofuel that is expected to overcome the issue on limited natural resources of crude oil and other fossil energy, cannot automatically settle the issue, because the development of biofuel raw materials requires extensive planting area, therefore, the place where biofuel raw materials will be developed becomes a special issue. In addition, considerable need for seeds is another constraint.

The development of biofuel industry will on one hand trigger the improvement in new job opportunities, thereby improving the people's living standard, but will cause potential environmental damage as well.

The development of new planting area to fulfill the need for raw materials will change ecosystem in an area, considering the need for land for biofuel development is million hectare of land that the majority thereof is forest area.

In addition, the development of biofuel industry requires supporting external factors, one of them is crude oil price. The increasing price of the world's oil highly affects the development of this industry, since the increasing price of crude oil will impact the difficulty to obtain CPO that is one of the main raw materials of biofuel in Indonesia. Export sale of CPO will be far more profitable in this condition than producing biofuel to fulfill domestic need.

Therefore, the use of other raw materials that have high economic value and not the main raw material of other industries, and can be adaptively developed in various regions in Indonesia, is an important factor that can support the development of biofuel industry, and apart from negative influence of fluctuating fluc·tu·ate  
v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates

v.intr.
1. To vary irregularly. See Synonyms at swing.

2. To rise and fall in or as if in waves; undulate.

v.
 crude oil price.
Table - 1
Potential plants for ethanol development
in Indonesia

     Plant         Part of plant           Ethanol
                                         productivity
                                         (L/ha/year)

Cassava            Root                         4,500
Sweet potato       Root                         7,800
Sugar cane         Stalk                5,000 - 6,000
Corn               Grain                5,000 - 6,000
Sorghum            Grain                5,500 - 6,000
Sago               Stalk                4,000 - 5,000
Aren               Sap                         40,000
Nipah              Sap                 5,000 - 15,000
Lontar             Sap                 8,000 - 10,000
Coconut            Sap                 8,000 - 10,000
Paddy              Stalk                1,000 - 2,000
Forest plants      Wood waste                       -

Source: BPPT

Table - 2
Biodiesel Specification based on SNI 04-7182-2006

No.               Parameter                    Units          Value

1.   Density at 40[degrees]C                Kg/m3           850-890
2.   Kinematic viscocity at 40[degrees]C    Mm2/s(cst)      2.3-60
3.   Cetane number                                          Min 51
4.   Flash point (close cup)                [degrees]C      Min 100
5.   Cloud point                            [degrees]C      Max 18
6.   Cooper strip corrosion                                 Max No. 3
     (3 hours at 50[degrees]C)
7.   Carbon residu at original sample                       Max 0.05
     at 10% destillation waste                              Max 0.30
8.   Water and sediment                     % vol           Max 0.5 *
9.   Destillation temperature 90%           [degrees]C      Max 360
10.  Sulfated ash                           % weight        Max 0,02
11.  Sulfur                                 Ppm-m(m.kg)     Max 100
12.  Phosforous                             Ppm-m(mg/kg)    Max 10
13.  Acid number                            Mg-KOH/g        Max 0.8
14.  Free glycerin                          % weight        Max 0.02
15.  Total Glycerin                         % weight        Max 0.24
16.  Linolenic acid methyl ester            % weight        Max 96.5
17.  Lodine Value                           % weight        Max 115
                                            9g-12/100
18.  Helphen test                                           Negative

Source: Directorate General of Oil and Natural Gas

Table - 3

Bioethanol Specification based on
SNI DT 27-000102006

No.    Parameter                                Units

1.     Density at 15[degrees]C                  Kg/m3
2.     V Kinematic Viscocity at 40[degrees]C    Mm2/s
3.     Cetane number / index
4.     Flash point 40[degrees]C                 [degrees]C
5.     Liquidation point                        [degrees]C
6.     Copper strip corrosion
       (3 hours at 500C
7.     Carbon residue                           % weight
8.     Water content                            Mg/kg
9.     T90/95                                   [degrees]C
10     Oxidation stability                      g/m3

                                                 Super

Density at 15[degrees]C                  820-860
V Kinematic Viscocity at 40[degrees]C    2.0 - 4.5
Cetane number / index                    [greater than or equal to]
                                           51/48
Flash point 40[degrees]C                 [greater than or equal to] 55
Liquidation point                        [less than or equal to] 18
Copper strip corrosion                   [less than or equal to] 1st
(3 hours at 500C                           class
Carbon residue                           [less than or equal to] 0.30
Water content                            [less than or equal to] 500
T90/95                                   [less than or equal to]
                                           340/360
Oxidation stability                      [less than or equal to] 25

                                                Regular

Density at 15[degrees]C                  815-870
V Kinematic Viscocity at 40[degrees]C    2.0 - 5.0
Cetane number / index                    [greater than or equal to]
                                           48-45
Flash point 40[degrees]C                 [greater than or equal to] 60
Liquidation point                        [less than or equal to] 18
Copper strip corrosion                   [less than or equal to] 1st
(3 hours at 500C                           class
Carbon residue                           [less than or equal to] 30
Water content                            [less than or equal to] 50
T90/95                                   < 370
Oxidation stability                      -

Source: Directorate General of Oil and Natural Gas

Table - 5
Energy content of Biodiesel
and Petroleum diesel

Fuel type                         Btu/b     Btu/gal
Petroleum diesel                  18,300    129,050
Biodiesel                         16,000    118,170

Source: Directorate General of Oil and Natural Gas

Table - 6
Development of producer and
production capacity of biofuel, 2007

                                                          Production
Company                                   Location         capacity
                                                         (ton / year)

Lemigas                                 Jakarta                16,000
BPPT                                    Serpong                 1,000
BPPT Pemda Riau                         Kampar                  3,000
ITB Bandung                             Bandung                    50
PT Rajawali Nusantara Indonesia         West Java                  50
(RNI)
PPKS                                    Medan                  30,300
PT Anugrah Inti Gemanusa (Eterindo)     Gresik                120,000
PT Ganesha 77-PTPN 4                    Medan                   3,000
PT Sumi Asih                            Bekasi                100,000
BPPT Ekuin                              Jambi                     300
BPPT Ekuin                              Sumedang                  300
BPPT Ekuin                              Solok                     300
PT RAP                                  Jakarta                   500
PT Wilmar Bioenergi Indonesia           Dumai                 350,000
PT Energi Alternatif Indonesia          Jakarta                   300
PT Musi Mas                             North Sumatra         100,000
PT Karya Prajona Nelayan                North Sumatra         100,000
Total                                                         825,100

Source: DESDM

Table - 7
Development of ethanol production capacity, 2006

                                                          (Kiloliter)
                                               Production       Raw
Company                           Location      capacity     material

PT Aneka Kimia Nusantara         Mojokerto          5,000    Molasses
PT Basis Indah                   Sulawesi           1,600    Molasses
PT Bukitmanikam Subur Persada    Lampung           51,282    Molasses
PT Indo Acidama Chemical         Surabaya          42,000    Molasses
PT madu Baru                     Yogyakarta         6,720    Molasses
PT Molindo Raya Industrial       Malang            40,000    Molasses
PT Perkebunan Nusantara 11       Bondowoso          6,000    Molasses
PT Rodhia Manyar                 Gresik            11,000    Molasses
B2TP, BPPT                       Lampung               30     Cassava
Total                                             163,632

Source: DESDM

Table - 8
Production capacity and investment of biodiesel plant
and oil palm plantation area required

Production capacity    Investment      Oil palm plantation area
(tons/year)            (Rp billion)    required (Ha)

                300             0.7                          90
              3,000             6.0                         900
              6,000            12.0                       1,800
             30,000            60.0                       9,000
             60,000           120.0                      18,000
            100,000           200.0                      30,000

Source: Palm Oil Institute

Table - 9
Production cost of biodiesel plant in Indonesia

Ukuran           Cost process         Raw material
pabrik                                    (CPO)
(Ton/Year)    Rp/liter      %      Rp/liter     %

     6,000       1,000     21.4       3,666     78.6
    30,000         800     17.9       3,666     82.1
    60,000         700     16.0       3,666     84.0
   100,000         600     14.1       3,666     85.9

Ukuran        Total of
pabrik          cost         Gross margin
(Ton/Year)    Rp/liter    Rp (bill.)    %

     6,000       4,666      634        12.0
    30,000       4,466      834        15.7
    60,000       4,366      934        17.6
   100,000       4,266    1,034        19.5

Source: Palm Oil Institute
Assumption : CPO price = Rp 3,375/kg, 1 kg CPO = 1,0864 liter
             CPO price = Rp 3,666/ liter
             ADO price = Rp 5,300/liter

Table - 10
Investment cost structure of bioethanol plant

Investment                       US$ (000)       %

Main production machines             5,580      75.61
Supporting equipment                   400       5.42
Waste treatment unit                   690       9.35
Land (at least 30 hectares)             60       0.81
Power generators                       450       6.10
Factory and office buildings           200       2.71
Total                                7,380     100

Source: BPPT

Table - 11
Bioethanol production cost

                             Consumption / 1   Price/unit   Total cost
Cost components               liter of bio                  (Rp/liter)
                                 ethanol
Main basic material
Cassava                              6.5 kg       Rp 180        1,170
Additional basic material
Alpha amylase (kg)                      0.8           45           36
Gluco Acid (L)                          1.3           60           78
Sulphate Acid (L)                       0.2         0.65         0.13
NaOH (L)                               1.25           10         12.5
Urea (kg)                                 4          1.2          4.8
NPK (kg)                                1.5            3          4.5
Antifoam (ml)                          0.25           35         8.75
Water (L)                              20.5         0.75         15.4
Steam (kg)                              5.1          170          867
Electricity                             1.3          150          195
Total cost                                                      2,400

Source: BPPT

Table - 12
of oil palm planting area in Indonesia, 2001 - 2006

                                                     (000 Ha)
                     State
         Small       owned      Private                Growth
Year    holder     enterprise   company      Total      (%)

2001      1,561          610       2,542      4,713         -
2002      1,808          632       2,627      5,067        8%
2003      1,854          663       2,766      5,284        4%
2004      2,220          606       2,459      5,285        0%
2005      2,357          530       2,567      5,454        3%
2006      2,636          697       2,742      6,075       11%

Source: Directorate General of Plantation--Ministry of Agriculture

Table - 13
Development of oil palm planting area extent,
2001--2006

                                                               (000 ha)
          Small      State owned     Private                    Growth
Year      holder     enterprise      company       Total           (%)

2001    2,798,032      1,519,289    4,079,151     8,296,472          --
2002    3,426,740      1,607,734    4,587,871     9,622,345        14.6
2003    3,517,324      1,750,651    5,172,859    10,440,834         8.5
2004    3,847,157      1,617,706    5,365,526    10,830,389         3.7
2005    4,500,769      1,449,254    5,911,592    11,861,615         9.5
2006    5,130,635      1,935,826    6,324,346    13,390,807        12.9

Source: Directorate General of Plantation--Ministry of Agriculture

Table - 14
Business groups that constitute main players
of oil palm plantation in Indonesia

                             Country of
                              ultimate      Land bank
Group                        ownership         (Ha)

Anglo Eastern               Malaysia            33,692
Astra Agro                  Singapore          290,621
Bakrie                      Indonesia           80,000
Benua Indah                 Indonesia          180,000
Ballore                     France              37,467
Bumi Flora &                Indonesia           11,982
Parasawita
Cargill                     USA                 27,000
Carson Cumberbatch          Sri Langka/         15,934
                            Ceylon
CDC                         UK                  30,625
Cisadane                    Indonesia           20,652
Dutapalma                   Indonesia           60,000
Golden Hope                 Malaysia            72,000
Hasil Karsa                 Indonesia           14,000
Hasko                       Indonesia            8,000
Incasi Raya & Metro         Indonesia          200,000
Johor                       Malaysia           140,000
Kuala Lumpur kepong         Malaysia            52,000
Kumpulan Guthrie            Malaysia           215,973
Kuok                        Malaysia            57,927
Lyman                       Indonesia          160,000
Musi Mas                    Indonesia           60,000
Napan & Risjadson           Indonesia          340,000
Oriental                    Malaysia            43,900
Perkebunan Nusantara        Indonesia          770,000
Raja Garuda Mas             Indonesia          543,000
REA                         UK                 125,000
Rowe Evans                  UK                  35,304
Salim                       Indonesia          230,000
Sinar Mas                   Indonesia          591,000
Sipef                       Belgium             65,000
Sungai Budi                 Indonesia           62,015
Surya Dumai                 Indonesia          154,133
Tirta Mas & Maharani        Indonesia          270,000
Wilmar                      USA/China               --
Total areal dan produksi
  di Indonesia                                      --

                                               CPO
                            Planted area    production
Group                           (Ha)          (Ton)

Anglo Eastern                     18,389        63,240
Astra Agro                       189,970       543,635
Bakrie                            34,681        55,401
Benua Indah                           --            --
Ballore                           37,467       182,628
Bumi Flora &                          --            --
Parasawita
Cargill                           27,000       100,000
Carson Cumberbatch                12,557        26,570

CDC                               22,731       100,000
Cisadane                              --            --
Dutapalma                         42,000            --
Golden Hope                        8,014            --
Hasil Karsa                           --            --
Hasko                                 --            --
Incasi Raya & Metro                   --            --
Johor                             19,622            --
Kuala Lumpur kepong               31,808            --
Kumpulan Guthrie                 162,213       329,524
Kuok                               9,708        16,100
Lyman                                 --            --
Musi Mas                              --            --
Napan & Risjadson                 40,534       259,492
Oriental                              --            --
Perkebunan Nusantara             561,126     2,094,364
Raja Garuda Mas                  317,850       600,000
REA                               13,209        28,557
Rowe Evans                        25,136            --
Salim                            161,973       775,651
Sinar Mas                        282,000     1,105,000
Sipef                             29,364       127,003
Sungai Budi                       12,000            --
Surya Dumai                       23,975            --
Tirta Mas & Maharani             105,282
Wilmar                                --            --
Total areal dan produksi
  di Indonesia                 4,100,000     9,020,000

Source: Ministry of Agriculture

Table - 15
Productivity comparison Jatropha
in different land condition

Description                  Poor soil    Normal soil   Fertilied soil

Planting density              2 x 1,5         2 x 2            2 x 3
Populasi/hektar                 3,330         2,500            1,670
Seed yield/plant 2 nd year   200 gram    1,000 gram       2,500 gram
Oil/kg 30%-35%                 220 kg        830 kg         1,461 kg
Cake/kg 65-70%                 450 kg         1,625            2,714
Revenue @Rp 3.000/kg oil    1,360,000     2,490,000        4,383,000
Revenue @Rp 750/kg oil        337,500     1,218,750        2,035,500
Gross total (Rp)            1,687,500     3,708,750        6,418,500

Source: Ministry of Agriculture

Table - 16
Comparison of raw materials producing bioethanol

Raw material            Weight (kg)   Bio ethanol (L)

Sugar cane                   15                  1
Mollase                       4                  1
Cassava                       6.5                1
Corn                          2.5                1
Sorghum                       2.8                1
Sweet potato                  8                  1
Sago                         12                  1

Source: BPPT Lampung

Table - 17
productivity comparison
and planting period of bioethanol raw materials

                Harvesting     Productivity   Frequency of
Raw material     (Months)       (Tons/Ha)     harvesting per
                                                 annual

Cassava                 10             25              1x
Corn                 3,5-4              8              2x
Sorghum              3,5-4            4,5              3x
Sweet potato             4             20              2x
Sago                    96             30               -
Sugar cane              10             80              1x

Source: BPPT Lampung

Table - 18
Distribution of cassava planting area in Indonesia

                                                      Average
Province                 Area        Productivity    production
                      (million Ha)   (Tons/year)     (Tons/Ha)

North Sumatra              27.60          411.94          14.90
Lampung                   298.48        4,984.62          16.70
Central Java              114.69        1.651.48          14.40
West Java                 215.52        3.469.80          16.10
Yogyakarta                 47.48          764.41          16.10
East Java                 241.20        3.786.88          15.70
South Sulawesi             41.88          607.29          14.50
West Nusa Tenggara          8.28           88.57          10.70
East Nusa Tenggara         75.51          808             10.70
Papua                       3.83           40.93          10.69
Others                    114.44        1,705.23          14.90
Indonesia               1,239.86       18,479.96          14.90

Source: Central Bureau of Statistic (BPS)

Table - 19
Comparison of emission generated by diesel fuel (ADO)
and biodiesel from cooking oil waste

Description        AME           Solar

NO emission      1.005,8ppm    1,070ppm
CO emission          209ppm      184ppm
CH emission         13,7ppm     18.4ppm
Dust emission           0,5        0.93
SO2 emission           none

Source: BPPT

Table - 20
Biofuel development roadmap and
use projection in, 2005 - 2025

Year                   2005-2010              2011-2015

Biodiesel          Use of biodisel up    Use of biodisel up
                   to 10% of 2.41        to 15% of 4.52
                   million Kl of         million Kl of
                   consumption of        consumption of
                   diesel oil fuel       diesel oil fuel

Bioethanol         Use of bioethanol     Use of bioethanol
                   up to 5% of 1.48      up to 10% dari
                   million Kl of         2.78 million Kl of
                   consumption of        consumption of
                   gasoline              gasoline

Bio-Oil
Biokerosene        Use of bio-           Use of bio-
                   kerosene up to        kerosene up to 1.8
                   1million Kl           million Kl

Pure Plantation    Use of PPO up to      Use of PPO up to
Oil (PPO) for      0.4 million Kl        0.74 Kl
power plants

Biofuel            Use of bio-fuel up    Use of bio-fuel up
                   to 2% of 5.29         to 3% of 9.85
                   million Kl of         million Kl of
                   energy mix            energy mix
                   consumption           consumption

Year                   2016-1025

Biodiesel          Use of biodisel
                   up to 20% and
                   10.22 million Kl
                   of consumption
                   of diesel oil fuel

Bioethanol         Use of bioethanol
                   up to 15% form
                   6.28 million Kl of
                   consumption of
                   gasoline

Bio-Oil
Biokerosene        Use of bio-
                   kerosene up to
                   4.07 million Kl

Pure Plantation    Use of PPO up to
Oil (PPO) for      1.69 Kl
power plants

Biofuel            Use of bio-fuel up
                   to 5% dari 22.26
                   million Kl of
                   energy mix
                   consumption

Source: Ministry of Energy and Mineral Resources

Table - 21
Development of biofuel selling locations

Products             City                Total number    Volume
                                         of SPBU         (KL/day)

Bio solar (B5)       Jakarta                     201    1,200-1,300
Bio solar (B5)       Surabaya                     15         80-100
Bio premium (E3)     Malang                        1           8-10
Bio Pertamax (E3)    Jakarta                       4             10
Bio Pertamax (E3)    Surabaya & Malang             8              5

Source: Pertamina
Bio solar (B5) : mixture of 5% FAME (Fatty Acid Methyl Ester)
with 95% ADO
Bio premium    : mixture of 5% ethanol with 95% gasoline (premium)
Bio pertamax   : mixture of 3% ethanol with 97% pertamax

Table - 22
Biofuel distribution target of Pertamina 2008-2012

         2008                     2009-2010

Biodiesel (B5)            Biodiesel (B10)
Transport for 2 large     Transport for 5 large
cities in Java            cities in Java

Biopremium (E5)           Biopremium (E10)
Transport for 2 large     Transport for kota-large
cities in Java            cities di Jawa

Biopertamax               Biopertamax (E10)
Transport for 4 large     Transport for large cities
cities in Java and Bali   in Java and Bali

         2008                     2011-2012

Biodiesel (B5)            Biodiesel (B10) transport
Transport for 2 large     for large cities in Java,
cities in Java            Sumatra and Kalimantan
                          Industry (10%) of
                          Electricity (10%)

Biopremium (E5)           Biopremium (E10)
Transport for 2 large     Transport for kota-large
cities in Java            cities di Jawa dan
                          Sumatera

Biopertamax               Biopertamax (E10)
Transport for 4 large     Transport for large cities
cities in Java and Bali   di Java and Bali and
                          Sumatra

Source: Pertamina

Table - 23
Biofuel sale in Indonesia (May 2006 - August 2007)

Products        City/Area   Launching date     Number of   Volume
                            of products        SPBU        (kilo-
                                                           liter)

Bio Solar       Jabotabek      20 May 2006         202
                                                          595,000
                Surabaya    12 August 2006          11
Bio Premium     Malang      13 August 2006           1      4,200
Bio Pertamax    Jakarta     11 December 2006        14
                Surabaya      11 June 2007           6      4,300
                Malang        11 June 2007           4

Source: Pertamina

Table - 24
Power plants of PLN with biodiesel

Power Plant                      Location            Capacity (KW)

PLTD Muara Teweh-                Central and South          4,250
Kuala Kapuas                     Kalimantan

PLTD Bangkalan Bun               Central and South          2,984
                                 Kalimantan

PLTD Buntok - Kuala Kapuas       Central and South          4,052
                                 Kalimantan

PLTD Kota Baru                   Central and South          4,140
                                 Kalimantan

PLTD Pagatan- Kota Baru          Central and South          4,530
                                 Kalimantan

PLTD Petung                      East Kalimantan            9,834

PLTD Long Ikis                   East Kalimantan            2,448

PLTD Melak                       East Kalimantan            1,294

PLTD Kota Bangun                 East Kalimantan            2,070

PLTD Nunukan                     East Kalimantan            4,958

PLTD Tanjung Selor               East Kalimantan            4,290

PLTD Malinau                     East Kalimantan            1,120

PLTD Gunung Sitoli- Nias         North Sumatra              4,590

PLTD Piru - Ambon                Maluku                       750

PLTD Bula                        Maluku                       375

PLTD Sofifi                      Maluku                       740

PLTD Malifut                     Maluku                       540

PLTD Maffa                       Maluku                       158

PLTD Kairatu                     Maluku                       700

PLTD Masohi                      Maluku                       700

PLTD TB Karimun                  Riau Island               13,000

PLTD Teluk Kuantan               Riau Island                1,100

Source: Ministry of Energy and Mineral Resources

Table - 25
Development of biofuel price in the world

                  ADO         Gasoline    Fame        Ethanol
                  (US$/Ltr)   (USC/Ltr)   (US$/Ltr)   (US$/Ltr)

   August 2006       0.543       0.498       0.586       0.552
September 2006       0.477       0.404       0.547       0.549
  October 2006       0.447       0.379       0.547       0.547
 November 2006       0.440       0.385       0.539       0.550
 December 2006       0.438       0.415       0.569       0.553
  January 2007       0.415       0.373       0.616       0.554
 February 2007       0.444       0.406       0.604       0.554
    March 2007       0.462       0.467       0.608       0.548
    April 2007       0.508       0.512       0.651       0.552
      May 2007       0.513       0.556       0.693       0.568
     June 2007       0.514       0.517       0.761       0.559

Source: Pertamina

ADO = Automotive diesel oil

Fame: Fatty acid methil ester/ biodiesel

Table - 26
Price comparison between biofuel and fossil fuel, 2007

Biosolar (B2,5)           Rp 4,958 /liter
ADO                       Rp 4,906 /liter
Biopremium (E3)           Rp 4,723 /liter
Gasoline                  Rp 4,714 /liter

Source: Pertamina

Table - 27
Government policies on biofuel

Government policies         Issuing date       Contents

Presidential Instruction    25 January 2006    Provision and
No. 1/2006                                     utilization of
                                               vegetable fuels as
                                               alternative fuels

Presidential Regulation     25 January 2006    National energy policy
No. 5/2006

Presidential Decision       24 July 2006       Setting up of a
No. 10/2006                                    National Team for
                                               Development of
                                               Vegetable Fuels to
                                               accelerate reduction
                                               of poverty and
                                               unemployment rates

Decision of Oil and Gas     17 March 2006      Quality standards of
Dir.Gen. No. 3674                              gasoline, for domestic
K/24/DJM/2006                                  market and maximum
                                               limit of 10% for the
                                               use of ethanol in
                                               gaoline

Decision of Oil and Gas     17 March 2006      Quality standards for
Dir.Gen. No. 3675                              diesel oil for domestic
K/24/DJM/2006                                  market and maximum
                                               limit of 10% for the
                                               use of biodiesel
                                               in diesel oil.

Decision of Oil and Gas     26 September       Quality standards for
Dir.Gen. No. 13483          2006               biodiesel as
K/24/DJM/2006                                  alternative fuel for
                                               domestic market.

Decision of Energy and      10 October 2006    -Trade procedure of
Mineral Resource                               biofuel as alternative
Minister No. 051/2006                          fuel
                                               -To secure supply of
                                               buiofuel for domestic
                                               consumption
                                               -Biofuel exports and
                                               imports must be with
                                               recommendation fo the
                                               Energy and Mineral
                                               Resources Minister.

Source: Ministry of Energy and Mineral Resources

Table - 28
Mixed energy use according to the target of
the Regulation of the President No. 5 of 2006

                                             Target as set in
                                               Presidential
                                              Regulation No.
Types of energy          2005                     5/2006

Petroleum                   49.2%        [less than or equal to] 20%
Natural Gas                 18.9%     [greater than or equal to] 30%
Coal                        24.4%     [greater than or equal to] 33%
Biofuel                         0%       [less than or equal to] 5%
Geothermal                    5.2%       [less than or equal to] 5%
Other renewable               2.7%       [less than or equal to] 5%
sources of energy
Liquefied coal                  0%       [less than or equal to] 2%
Total                         100%                             100%

                      Optimistic
                        target
                     according to
                      Energy Blue
Types of energy          print

Petroleum                  26.20%
Natural Gas                30.60%
Coal                       37.70%
Biofuel                      1.4%
Geothermal                  3.80%
Other renewable             5.30%
sources of energy
Liquefied coal                 0%
Total                        100%

Source: Ministry of Energy and Mineral Resources

Table - 29
Biodiesel development plan, 2008 - 2010

                                            Width of       Planned
                                           cultivated       prod.
                                              area         capacity
   Companies             Location          (hectares)    (kiloliter)

Wilmar Group       Sumatra, Kalimantan        180,000       1,000,000
Pertamina          Dumai, Balikpapan                          500,000
Sinar Mas          Dumai, West Kal.,          440,000         400,000
                     Merauke
Bakrie Rekin       Sumatra, Java                         100,000 tons
Indofood           Sumatra, Kalimantan        250,000
Asian Agro         Sumatra                               150,000 tons
Sumiasih           Bekasi, West Java                     100,000 tons
Aprobi Group       Kalimantan                 100,000
BP                 East Nusa Tenggara,        100,000
                   Papua, Kalimantan
Sweden             East Nusa Tenggara         100,000        350,000
  Bioenergy
Indomal            Sulawesi, Merauke          300,000
Sinar mas          West Kalimantan,           440,000
                     Merauke
Genting Group      Merauke                    400,000
Muting Group       Merauke                    290,000
Asiatic Group      West Kalimantan             80,000
Tolaram            West Kalimantan            110,000
Indomal + PTPN     Medan, Banten Pekan      1,500,000
                     Baru
Clean Biofuel      Gorontalo                   50,000

Source: Ministry of Energy and Mineral Resources

Table - 30
Bioethanol development plan, 2008 - 2010

                                           Width of
                                          cultivated    Planned pro.
                                             ares         capacity
   Companies            Location          (hectares)    (kiloliter)

Salim Group        South Sumatra              70,000          70,000

Sungai Budi        Lampung                    25,000         120,000

Sugar Group        Lampung, South
                   Sumatra, Kalimantan       200,000         500,000

Wilmar Group       Lampung, South             70,000          70,000
                   Sumatra

Molindo            Lampung, Kediri,           25,000         100,000
                   Pacitan

Sampoerna          Madiun                    100,000         375,000

Mitsui Petrobas    Papua, Kalimantan         200,000         500,000

PTPN               North Sumatra,
2,8,9,10,11,14     Lampung, South            100,000         200,000
                   Sulawesi, Java, NTT

Sorini Tbk         Southeast Sulawesi        150,000         200,000

EN3 Korea          South Sulawesi             45,000         180,000

Medco              Lampung, West Java,        50,000         270,000
                   Kalimantan

Source: Ministry of Energy and Mineral Resources

Table - 31
Projection on the needs for land, manpower, and investment for
biofuel development, based on Blue Print Biofuel industry in
Indonesia in 2010

   Parameter              Oil palm             Jatropha
                                                 curcas

Workers                     750,000             500,000
employed
directly

Workers                       1,167              68,182
employed
indirectly

Income/capita          Rp20,000,000        Rp13,500,000
(Sugar @0.5ha          /year/person       /year/person,
Cassava, Oil
palm @ 2ha
Jatropha
curcas @ 3ha)

Bio ethanol /             6,000,000           2,250,000
biodiesel (Ton)

Production (ton           30,000,000          7,500,000
seeds,unit)

Industry (unit)                  167              22,727

Cultivated area            1,500,000           1,500,000
(ha)

Seedlings                202,500,000           3,750,000
(unit)

Plantation           Rp 45 trillion     Rp 4.5 trillion
investment
(on farm)

Processing           Rp 10 trillion     Rp 2.27 trillion
investment
(off farm)

   Parameter             Sugracane            Cassava

Workers                   1,500,000             750,000
employed
directly

Workers                       6,250              11,538
employed
indirectly

Income/capita           Rp9,140,600       Rp12,000,000/
(Sugar @0.5ha         /year/person,         year/person
Cassava, Oil
palm @ 2ha
Jatropha
curcas @ 3ha)

Bio ethanol /              3,750,000           4,615,386
biodiesel (Ton)

Production (ton           60,000,000          30,000,000
seeds,unit)

Industry (unit)                  125                 288

Cultivated area              750,000           1,500,000
(ha)

Seedlings                  6,000,000          12,000,000
(unit)

Plantation         Rp11.25 trillion     Rp 5.25 trillion
investment
(on farm)

Processing         Rp 43.75 trillion    Rp 43.27 trillion
investment
(off farm)

   Parameter             Total

Workers                   3,500,000
employed
directly

Workers                      87,137
employed
indirectly

Income/capita         Rp 54,640,600
(Sugar @0.5ha          /year/person
Cassava, Oil
palm @ 2ha
Jatropha
curcas @ 3ha)

Bio ethanol /             16,615,385
biodiesel (Ton)

Production (ton          127,500,000
seeds,unit)

Industry (unit)               23,307

Cultivated area            5,250,000
(ha)

Seedlings                224,500,000
(unit)

Plantation           Rp 66 trillion
investment
(on farm)

Processing         Rp 99.29 trillion
investment
(off farm)

Source: Ministry of Energy and Mineral Resources
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Title Annotation:INDUSTRY PROFILE
Publication:Indonesian Commercial Newsletter
Geographic Code:9INDO
Date:Jan 1, 2008
Words:11173
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