US ethanol can now enter the Indonesian market through pre-blended fuel following the recent removal of a ban.
This change creates a potential market of more than 200 million gallons (71 million bushels in corn equivalent).
The market development efforts to accomplish this policy goal was undertaken jointly by the US Grains Council (USGC), Growth Energy, Renewable Fuels Association (RFA) and the US Department of Agriculture’s Foreign Agricultural Service (USDA’s FAS).
Indonesia is expected to grow to the sixth largest global gasoline market within a decade.
Manuel Sanchez, USGC regional director for Southeast Asia , said: “The removal of the ethanol ban in Indonesia is a tremendous development in this market and for our regional market development efforts to demonstrate the benefits of expanded ethanol use.
“We have worked tirelessly with our colleagues to demonstrate ethanol’s benefit, and this change in Indonesia is in line with other countries in this region that already blend ethanol into their fuel.”
Fuel blends are controlled by the Indonesian state-owned oil company, Pertamina. The Indonesian government has encouraged Pertamina to reduce petroleum imports, while at the same time setting goals of achieving 23% of its energy needs from renewable resources by 2025.
Pertamina has removed a prohibition on ethanol as a component in gasoline import tenders. The removal opens the market for ethanol at a blend rate of up to 3% as a component of imported RON 88 and 7% for RON 92 gasoline.
“The long-term cost-savings for using ethanol in Indonesian gasoline will be measurable,” Sanchez added. “We will continue to engage with local leaders as they work to capture the full range of economic, environmental and health benefits associated with blends beyond 10%.”
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