Indonesia will tighten ethanol imports according to the Agriculture Minister

Amran Sulaiman, Indonesia's Agriculture Minister, said that the country will tighten its controls on ethanol imports. This is to support farmers who have been hit by the fall in molasses prices, which are a major feedstock.

He didn't say when his policy would be implemented.

Indonesia is trying to implement a mandatory mix of bioethanol and gasoline to reduce fuel imports, carbon emissions and to reduce fuel costs. However, the implementation has been delayed due to limited ethanol supply.

Sugarcane Farmers Association of Canada reported that the price of molasses dropped by 60% in this year.

Amran stated that ethanol import restrictions would help farmers who have been hurt by lower prices.

According to Apsendo data, an Indonesian association of methylated spirits producers and ethanol makers, Indonesia has the capacity to produce up to 303,325 Kiloliters of bioethanol annually by 2024. However, in 2018, production was 160,946 and imports were 11,829,

Last year, the domestic demand for bioethanol was 125,937 kL, while exports were 46,839 kL.

Pertamina, the Indonesian state-owned energy company, had said previously that it would blend more of its gasoline with imported ethanol to improve fuel quality and offer alternative fuels for the public. (Reporting Bernadette Cristina, Ananda Terresia; editing by David Stanway).

(source: Reuters)