Joint venture to construct bioethanol plant in Indonesia

A new bioethanol plant development has been launched by the Indonesian government this August.

To be located in East Java, the plant will use molasses as its base feedstock and have a production capacity of 30 million litres when complete.

The project is the result of a partnership between the Indonesia Industry Ministry and the Japanese New Energy and Industrial Technology Development Organisation, but the facility will be owned by plantation company PT Perkebunan Nusantara.

The resultant product will be purchased by state-owned oil and gas company PT Pertamina, according to minister Dahlan Iskan.

The project is expected to cost around $42.9 million (€32 million).