Indonesia’s sovereign wealth fund Danantara has begun construction on six downstream industrial projects across the country, including a bioethanol plant and a bio-refinery, with a total investment of about US$7 billion (approximately Rp117 trillion), Tempo reported.
Danantara Chief Executive Officer Rosan Perkasa Roeslani said the projects are spread across several regions and sectors, marking a major step in expanding the country’s industrial capacity.
Bioethanol Plant
The bioethanol plant is being developed in Glenmore, Banyuwangi Regency, East Java, through a partnership between PT Perkebunan Nusantara (PTPN) and state-owned energy company PT Pertamina (Persero). The facility is designed to produce up to 100 kiloliters of bioethanol per day.
Ethanol will be made using sugarcane supplied from company-owned plantations as well as local farmers, while existing assets from PT Energi Agro Nusantara (PT Enero), a subsidiary of PTPN, will also be used.
The project is expected to lower fuel imports by about US$13.9 million each year and reduce carbon dioxide equivalent emissions by 66,000 tonnes annually. At present, ethanol blending is used only in Pertamax Green 95 fuel sold on the island of Java.
Bio-refinery Project
Pertamina is also developing a bio-refinery in Cilacap, Central Java, which will be able to process up to 6,000 barrels of used cooking oil per day. The facility currently produces 27 kiloliters of sustainable aviation fuel (SAF) daily, with output projected to increase to 887 kiloliters per day by 2029.
The project is expected to reduce aviation fuel imports, support Indonesia’s SAF plans, and cut emissions by up to 600,000 tonnes of carbon dioxide equivalent each year. It is also projected to contribute around Rp199 trillion annually to the country’s gross domestic product and indirectly create up to 5,900 jobs.
Officials said the project will prioritize a 30% domestic component level and is expected to benefit more than 2,900 families.
