Jakarta, INTI - PT Pertamina (Persero) is developing a bioethanol production facility in Glenmore, Banyuwangi, East Java, with an annual capacity of 30,000 kiloliters to support the government's E10 fuel blending roadmap.
The project was announced by Pertamina Vice President Director Oki Muraza, who said the facility is intended to help achieve the national target for E10 fuel adoption.
The E10 program is part of Indonesia’s broader strategy to reduce gasoline imports while strengthening long-term energy security through greater use of renewable fuels.
In addition to bioethanol, Pertamina continues to expand its B50 biodiesel program, positioning Indonesia as the world’s largest biodiesel user. The company has already distributed B50 fuel through 86 of its 121 fuel terminals nationwide.
Three Key Bioenergy Opportunities
Muraza highlighted three major opportunities for bioenergy in supporting Indonesia’s energy transition. The first is the country’s abundant domestic biomass resources. The second is bioenergy’s role in enhancing energy security while accelerating the decarbonization of the transportation sector. The third is its potential to drive a circular economy that creates economic value and improves community welfare.
Turning Palm Waste into Renewable Fuel
Beyond utilizing crude palm oil (CPO), Pertamina is also exploring the use of empty fruit bunches (EFB) from oil palm plantations as a feedstock for bioethanol production.
Indonesia generates an estimated 25 million tons of EFB annually, much of which remains underutilized. According to Muraza, the key challenge lies in downstream processing, converting the biomass into glucose before producing bioethanol. If successful, the initiative could significantly reduce agricultural waste while increasing renewable fuel production.
Pertamina emphasized that achieving a successful energy transition requires collaboration across the entire biofuel value chain, including feedstock supply, refinery technology development, and nationwide distribution infrastructure.
Muraza stressed that close cooperation among the government, financial institutions, academia, industry, and the public will be essential to building a sustainable biofuel ecosystem, strengthening Indonesia’s energy independence, and reducing the country's reliance on imported fuels.
Conclusion
Pertamina’s investment in a new bioethanol facility marks a significant step toward expanding Indonesia’s renewable energy capacity and supporting the government’s E10 fuel blending target. By leveraging abundant biomass resources and promoting collaboration across the biofuel ecosystem, the initiative aims to strengthen national energy security, accelerate decarbonization, and advance the country’s transition toward a more sustainable and self-reliant energy future.
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