Bahlil Calls The Construction Of Biodiesel Factory Worth 1.2 Billion US Dollars Not Involving Foreigners

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia said the construction of a biodiesel raw material factory worth 1.2 billion US dollars was sourced from within the country, both private and state-owned enterprises (BUMN).

"The investors are domestic, there are no foreigners," Bahlil told the media crew at the Ministry of Energy and Mineral Resources Building, Friday, January 17.

The factory, which is located in Bojonegoro, Bahlil continued, will be the location for methanol and ethanol mixing as raw materials for biodiesel or B40 which is currently being worked on by the government. The need for methanol for the mandatory biodiesel program is 40 percent projected at 2.3 million tons.

"For example, we need 2.3 million tons of methanol in B40. We immediately build the direction of the President (Prabowo Subianto). Then the ethanol comes from sugarcane plants," continued Bahlil.

The ethanol padik made from sugar cane will be established in Merauke so that downstreaming and added value is carried out domestically.

"Well, one of them will be made in Java and Merauke. So that the fighting is really done all domestically," Bahlil continued.

The general chairman of the Golkar Party said that at this time the government was indeed encouraging the potential of bioenergy for national energy resilience by encouraging biodiesels using crude palm oil (CPO).

"The President's directive is that we encourage energy security. While we spur the lifting of our oil, one of the strategies is that we use biodiesel using CPO," said Bahlil.