Indonesia 'could be the biggest biofuel producer in the world'

Indonesia has the resources that could make it the biggest biofuel producer in the world, according to one think tank, who have criticised the national government for not injecting enough investment to spur the industry on.

Pri Agung Rakhmanto, the executive director of energy think tank ReforMiner Institute, said that there are significant quantities of degraded land across the country which could easily be transformed to grow the feedstock for biofuels, including palm oil, sugarcane and cassava.

In his biofuel analysis he told Jakarta Globe: “We have the potential to be the global biofuel king, just as long as there’s a commitment to growing the feedstock."

The major road block at this time is that crops are prioritised for food and not for growing biofuel feedstock, and there is also not enough being done to plant new crops to be used specifically for feedstock.

Mr Agung said that if more was done to reserve new land for biofuel feedstock, then food prices would remain stable and there would also be more crops available to be used for biofuel production.

The other problem that is stopping Indonesia becoming a global world player in biofuel production is that it exports a lot of the produce it grows. Crude palm oil is one example, which could be used to make biofuels domestically, and could end up being just as profitable as exporting it.

If the government commitment is there, and biofuel is recognised throughout the country as being profitable and sustainable, then there is no reason why Indonesia cannot shoot to the top of the biofuel producers.

Brazil is a good example of how countries can do this, with the country using its resources to make biofuel on a huge scale. If similar measurements can be made in Indonesia, then nationals may soon see cheaper petrol prices at a sustainable and renewable level, as well as a new export economy to enjoy.

Posted by Claire Manning