Will Prioritize Domestic Bioethenol Production, Pertamina Cancel Brazil's Company Acquisition?

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif. (Photo: Maria Trisnawati/VOI)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif revealed the latest developments related to the news that PT Pertamina would acquire a Brazilian bioethenol company.

Arifin said that for now, the procurement of bioethenol for green fuel will prioritize originating from abroad.

"There is no acquisition. We just use domestic sources," said Arifin, quoted on Thursday, July 11.

However, Arifin did not rule out the possibility for Indonesia to continue to buy bioethenol from Brazil for additional production of fuel made from bioethenol.

"If it can buy its goods (biortanol from Brazil)," added Arifin.

Previously, the Secretary General of the Ministry of Energy and Mineral Resources (ESDM) Dadan Kusdiana revealed that the government's follow-up plan after assigning an assignment to PT Pertamina (Persero) to acquire a bioethenol supply company from Brazil.

"It's a temporary step so that we can walk, so that the market can grow domestically," Dadan told the media quoted on Saturday, June 15.

Dadan said that the government is currently pushing for the issuance of a Presidential Decree regarding the development of sugar and bioethenol in Papua.

In fact, continued Dadan, the development of bioethenol as a substitute for raw materials has long been the government's plan.

However, until now, the supply availability factor is considered limited.

"Because the supply problem is not smooth, in the sense that the amount is also not significant, but we will start from what is now, in the future we do not see Pertalite or Pertamax, everything that exists for gasoline is mixed. Just like biodiesel," he concluded.