B50 Needs 2.5 Million Tons of Methanol per Year, Bahlil Prepares Two Industrial Projects

KARAWANG - Energy and Mineral Resources Minister Bahlil Lahadalia said the launch of B50 biodiesel brought new jobs for the government. The program increased the need for methanol to around 2.5 million tons per year.

Bahlil conveyed this after the launch of B50 by President Prabowo Subianto in Karawang, West Java, Thursday, July 9.

According to Bahlil, B50 is a quick leap in the energy security agenda. However, he emphasized that there are challenges that must be prepared immediately, especially the supply of methanol in the country.

"With the emergence of B50, there is an increase in the need for methanol. We only need methanol for B50 about 2.5 million tons per year," said Bahlil.

Methanol is an industrial chemical that is used in the biodiesel production process. In the B50 program, palm oil-based vegetable fuel or CPO is processed to be mixed in solar.

Bahlil said the government would encourage the development of the methanol industry so that these needs would not continue to depend on supplies from outside. There are two projects being prepared.

The first project is in Bojonegoro, East Java, with gas as raw material. The second project is in East Kalimantan and is part of coal beneficiation.

"There are two that we are building. One in Bojonegoro, it is a raw material for gas. The second is coal in East Kalimantan," said Bahlil.

According to Bahlil, the development of the methanol industry is a follow-up step after B50 was launched. The government not only wants to reduce solar imports, but also prepare a supply chain of supporting materials in the country.

He said President Prabowo also asked the Ministry of Energy and Mineral Resources to explore increasing the biodiesel mix to B60 through good studies and research.

"The President's instructions to us were to immediately consider and explore, study through good research so that we can increase it to B60," said Bahlil.

Bahlil said that B50 was still sold at a price of Rp. 6,800 for domestic consumption which received subsidies. He emphasized that there was no increase in prices for the subsidized user group.

"For domestic consumption, especially those who are subsidized, the price remains Rp. 6,800. So there is no price increase," he said.