New Development of Ethanol

Industry in Indonesia
Petrus Panaka
PT Gikoko Kogyo Indonesia
panaka@indo.net.id
&

M. Arif Yudiarto
yudiarto59@yahoo.com

Starch Technology Center (B2TP)

Agency for the Assessment and Application of Technology (BPPT)
Asian Science & Technology Seminar
Jakarta. March 7. 2007

Outline of Presentation
1. Indonesia biomass potential for Biofuel
2. Road Map of Bioethanol & Industry Plant in
Indonesia
3. Ethanol Production and Export in Indonesia
4. Strategy to solve oil price problem :
- Increase renewable fuel (biofuel) utilization
- Increase value added for energy resources
5. R &D of Gasohol.
6. Conclusions

Potential Biomass Resources in Indonesia

Plant

Part of Plant

Ethanol
Productivity(L/ha/yr)

Cassava

Root

4,500

Sweet potato

Root

7,800

Sugar Cane

Stalk
Molasses

5,000 6,000
40

Corn

Grain

5,000 -6,000

Sorghum

Grain

3,000 -4,000

Sweet sorghum

Stalk

5,500 6,000

Sago

Stalk

4,000 5,000

Aren

Sap

40,000*)

Nipah (Mangrove)

Sap

5,000 -15,000

Lontar

Sap

8,000 10,000

Coconut

Sap

8,000 10,000

Paddy

Stalk

1,000 2,000

Forest plants

Wood waste

Cassava Plantation in Indonesia

Area
(mil. ha)

Productivity
(ton/yr)

Avr production
(t/ha)

27.6

411.94

14.90

Lampung

298.48

4,984.62

16.70

West Java

114.69

1,651.48

14.40

CenterJava

215.52

3,469.80

16.10

Jogyakarta

47.48

764.41

16.10

East Java

241.20

3,786.88

15.70

Banten

10.75

154.82

14.40

South Sulawasi

41.88

607.29

14.50

NTB

8.28

88.57

10.70

NTT

75.51

808.00

10.70

Papua

3.83

40.93

10.69

Others

114.44

1,705.23

14.90

1,239.86

18,473.96

14.90

Province
North Sumatera

Indonesia
Source : BPS. 2004

Incentives for Biofuel Investment

1. Domestic market obligation for feedstock and product
of biofuel
2. Pricing policy based on production cost
3. Incentives on value added for both feedstock and
product of biofuel
4. In short term. biofuel is categorized as public service
obligation product
5. Appointment to PERTAMINA and PLN as standby
buyer biofuel
6. Simple procedure for biofuel investment
7. Bank of Indonesia to lower Asset by Risk (ATMR) for
biofuel credit
8. Establishment of Green Energy Fund for Biofuel
Source : DJLPE. 2007

Biofuel Specification Policy

Fuel specifications were revised on 17th
March 2006 for both gasoline and diesel;
Biodiesel and bioethanol are allowed to be
blended with diesel and gasoline at
maximum
10%
v/v.
respectively;
Technical specifications for biodiesel and
bioethanol
follow
the
government
standards.
Source : DJLPE. 2007

ROAD MAP OF BIOETANOL

Year

Market

Product

2006 2010

2011-2015

Bioetanol supply 1.48 mil kl

(10% of total gasoline
consumption)

Bioetanol supply
2.78 mil kl ( 15% of total
gasoline consumption)

Gasohol E-10
(Bioetanol from cassava & molasses)

Bioetanol supply
6.28 mil kl ( minimal 20 % of
total gasoline consumption)

Gasohol/ FGE (Bioetanol from

lignocellulose.starch and cassave )

NATIONAL STANDARAD OF FUELGRADE FOR GASOHOL & ETHANOL (FGE)

Technology
Technology
Status

Bioetanol production 99.5% (FGE) by

chemical dehydration technique and
molecular sieving of molasses feedstock
based and commercial scale

R & DR&D

Gasohol/ FGE (Bioetanol from

cassava. starch & molasses)

2016-2025

Bioethanol
Dehydration
with adsorben

Bioetanol production 99.5% (FGE) with

production rate and high energy ratio
based on cassava and starch feedstock for
commercial scale

Membrane
technology for
dehydration
Fermentationpr
ocess
technology

Carbohydrate resources
for bioethanol feedstock
Strain yeast
improvement

Source : DJLPE. 2007

Bioetanol production 99.5% (FGE)

from lignocelulose fibre
(agriculture/forest waste).starch and
cassava (incl. algae) at commercial
scale

Lignocellulose as
bioethanol feedstock
and fuel

Road map for Bioethanol

Industry Plant Construction
Demo plant
BPPT
88KL/day
kL/hari

Pembangunan
The construction of
104 plant
plants@
@60
KL/day
104
60kL/hari

2005

2007

2009

2010

The
construction of
Pembangunan
62
@60
KL/day
62 plants
plant @
60kL/hari

2013

The
construction of114
114plant
plants@@60
KL/day
Pembangunan
60kL/hari

2015

2018

2020

2023

202 5

Note :
1). 60 kL/day capacity is the lowest capacity of commercial ethanol plant based on starch feedstock. It needs about
Rp 150 billion per-plant investment.
2). For efficiency reasons. investors should be encouraged to construct 2-3 times of those capacity.
3). The development of commercial plant under 60 kL/day is possible with local avaiable feedstock (especially starch.
sap. lontar. nipah. sugarcane and sweet sorgum) for rural areas where price of fuel oil is high.

Source : DJLPE. 2007

ETHANOL PRODUCTION IN INDONESIA (2005)

Name of Company

Location

Production
Capacity
(Kiloliter/y)

PT Aneka Kimia Nusantara

Mojokerto

5.000

Molasses

PT Basis Indah

Sulawesi

1.600

Molasses

PT Bukitmanikam Subur Persada

Lampung

51.282

Molasses

PT Indo Acidama Chemical

Surakarta

42.000

Molasses

Yogyakarta

6.720

Molasses

Malang

10.000

Molasses

Bondowoso

6.000

Molasses

Gresik

11.000

Molasses

Lampung

~ 30

Cassava

PT Madu Baru
PT Molindo Raya Industrial
PT Perkebunan Nusantara XI
PT Rhodia Manyar
B2TP, BPPT

Source : Kompas. April 19. 2006.

Feedstock

Product : technical grade ethanol and raw spirit (ethanol: 95-97 % v/v)

Indonesia Ethanol Export Country Destination

(2004)
Destination

Capacity (ton)

Value (US$)

Japan

9,459.5

3,337,018

China

12.8

8,800

Singapore

255.50

Philippines

7,374.405

Malaysia
Taiwan

12.8
4,982.963

Thailand

12.8

Others

87.662

Total

22,198.43

Source : Kompas. April 19. 2006

145,726
2,609,972
7,672
2,948,038
7,890
115,382
9,180,498

Indonesia Ethanol Export

(2000 2004)
Year
2000

Capacity
(ton)
30,197

In US$
(x 1000)
9,857

2001

18,291

7,257

2002

27,518

10,757

2003

26,536

10,585

2004

22,198

9,180

124,740

476.36

Total

Source : Kompas. April 19. 2006

FUTURE ETHANOL PLANTS IN INDONESIA

Location

Production
Capacity
(Kiloliter/y)

Feedstock

PT Indo Lampung Distillery

Lampung

60,000

Molasses

PT Sampurna

Ponorogo

16,800

Cassava

PT RNI & Choi Biofuel Co.

Pasuruan

11,200

Molasses

Kanematsu Corporation

30,000

Cassava

CNOOC & PT Smart & Hongkong

Energy

Cassava &
Molasses

PT Medco Energi Internasional Tbk

Kotabumi

Cassava

PTPN X & PT Molindo Raya Industri

Kediri

120

Molasses

Name of Company

Source : From Kompas & Sinar Harapan. July 2006 March 2007.

Example of Countries with Bioethanol Application

Country

Description

Brazil

The largest producer of ethanol from sugar cane in the world with annual
production of 18 billion liter from 320 ethanol plants. Currently, from all types of
fuel sold at the market, 22 26% is ethanol. Production cost is US 14 16 per
liter.

USA

The second largest producer after Brazil. The annual production is more than 10
billion liter, however, this is only 2% of the total usage of fuel. The new
legislation will increase the use of bioethanol.

China

Third biggest producer. The processing method came from Brazil and now is
constructing new ethanol plants to increase their production.

Germany

To increase the use of biofuel, the government has issued tax exemption policy.

Austria

To treat used cooking oil collected from McDonalds to drive public buses at
Graz.

Sweden

. The test on ethanol mixed with petrol in public buses at Stockholm showed
that big vehicles which have high fuel consumption can also use with the lower
cost fuel such as bioethanol.

Ghana

They have biodiesel plants from various grains which can be harvested in short
time. From this they can saved imported fuel up to 240 million US$.

Source : Kompas, August 18, 2005 and March 16, 2006

Continue
Country
Thailand

Description

Indonesia

Biopremium (E5, 5% ethanol & 95% petrol) and biopertamax (E5, 5%

ethanol & 95% pertamax) products from PT Molindo Raya and Pertamina. As
for Aug 2006, only 2 bioethanol filling stations have been operating at Malang
and Semarang.

Japan

E3. Ethanol Import from Brazil.

E10, Gasohol. Target from December 2005, increased filling station from 829 to
4,000 stations. 6 ethanol plants (2006) with production of 1,090 kL/day. Another
17 plants permitted with total capacity of 300,000 kL/day.

Source : Kompas, August 18, 2005 and March 16, 2006

Fuel Grade Ethanol (FGE) Production Flow Diagram

Based on Cassava
Molasses
Yeast
Amylases

Cassava

Pretreatment

Cooking and
Saccharification

Distillation
Source : B2TP-BPPT

Dehydration

Fermentation

FGE
(Ethanol 99.5%)

1. Cassava from plantation

2. Crusher

3. Cooking tank

Ethanol
95% v/v

6. Distillation column

5. Fermentor

4. Saccharifying tank

Cassava Ethanol Production Flow Diagram

Source : B2TP-BPPT

R&D of Bioethanol from Cassava

Cassava Fermentation Using Pilot Plant of 8 KL/Day

BPPTs 8 kL/day Ethanol Pilot Plant at

Lampung, Established in 1983

Source : B2TP-BPPT

Ethanol
(%)

Ferm.Ratio
(%)

Ratio of
Cassava/
Ethanol

9.0

97.12

5.27

0.40

9.4

98.50

5.20

14.91

1.80

9.2

92.80

5.34

106.181

15.84

0.50

8.9

87.25

5.87

99.930

13.87

0.30

7.7

86.00

5.42

99.462

11.80

1.40

7.1

93.00

5.26

98.311

13.75

0.40

8.6

97.00

5.27

98.169

14.46

1.20

9.2

98.79

5.19

Average

5.35

Broth
volume
(liter)

Total Sugar
Start

Finish

102.367

14.39

1.81

101.990

14.82

100.196

Engine Performance & Emission Testing using

Chassis Dynamometer
Light Duty Gasoline
Short Modal
Typical System Schematic

Ambient & Sample

Gas Collection Bags

Driver Aid

CVS Sampler

CVS Control Unit

Ambient
Air Filters

Fan

Dyno
Control

Dilute
Sample

Turbine
Exhauster Unit

Tailpipe Sample
Autotest

Environmental &
Auxiliary Input

Raw Bench

Engine standard test : 80/1269 EEC

Emission standard test : UN-ECE 83-04

Source : B2TP-BPPT

Automotive Engine Performance and Emission testing by a Chassis

Dynamometer at BTMP-BPPT.
Source : B2TP-BPPT

Laboratory Emission Test (no load)

Rotation

Premium

Pertamax

E3

E10

E20

Rpm

2500

2500

2500

2500

2500

CO (%)

3.66

2.85

2.44

1.04

0.76

CO2 (%)

12.60

13.00

13.20

14.00

13.70

HC (ppm)

372

351

390

514

673

O2 (%)

0.59

0.45

0.60

0.76

1.23

LAMDA

0.91

0.93

0.94

0.98

1.01

Tengine (oC)

88

87

88

87

87

Tamb (oC)

30

32

33

31.8

32.3

On Road Acceleration & Emission Tests

No

Acceleration
(km/hr)

Premium
(second)

Gasohol E10
(second)

1.

0 -100

19.01

17.16

2.

40 - 80

8.08

7.46

No

Emission

Premium

Gasohol E10

1.

CO

6.97%

5.61%

2.

CO2

10.1%

10.9%

3.

HC

394 ppm

335 ppm

4.

O2

0.74%

0.69%

5.

Lamda

0.827

0.862

Source :
Otomotif 18th Ed.,
Sept 5, 2005

Toyota Kijang Car Performance Test Using Gasohol

Fuel

Gasohol
E-10

Gasohol
E-20

Premium

Pertamax

Power (kW)

41.23

42.52

30.97

40.09

Force (N)

1856.1

1913.3

1393.8

1804

Fuel Consumption
(L/jam)

30.39

31.24

31.03

27.38

Source : BTMP-BPPT. 2004

R&D Results
The ratio of cassava to ethanol is average of 5.35
From the test results bioethanol mixed with gasoline
(premium) :
- The adding of bioethanol (typically 10%) in gasoline
(premium) can improve combustion efficiency in car
engine since ethanol can improve octane number.
Bioethanol can reduce CO emission both in idle and
cycle (load) conditions.
E10 gives the highest performance (power and traction)
nearly similar with Pertamax even CO emission is lower.

Conclusions

Indonesia has a big potential in utilizing biomass as biofuel feedstock to

produce bioethanol, such as sugarcane (molasses), cassava, sweet potato,
corn, etc. At current status, the annual total production of bioethanol is
about 200,000 kL from more than 10 major companies whereas the demand
is 1.7 million kL per year. With the current price of bioethanol of Rp. 5,300
(US$ 0.58) per liter, the mass utilization of these feedstock to produce
bioethanol is anticipated in the near future.
The government plans to produce enough biofuel by 2010 to replace 10% of
the countrys total oil-based fuel consumption which reached 70 million
kiloliter last year. Regarding to this, Government has issued policies &
regulations on the supply & utilization of biofuel as alternative fuel and
providing incentive and tariff.
Government has to establish a commercialization scheme for bioethanol
utilization in order to integrate with an existing fossil fuel commercialization
and also creating a simple testing system and standard procedure for
bioethanol.
Starch Technology Center (B2TP), BPPT has initiated R&D of 8 kL per day
ethanol pilot plant using cassave in Lampung since 1983. It is expected
more private & government owned companies can utilize BPPTs
experiences to develop their commercial plants in Indonesia in the near
future.

For more information

PT GIKOKO KOGYO INDONESIA

Pulo Gadung Industrial Estate
Jl. Pulo Kambing Kav II I/9
Jakarta 13930
Tel: 62 460 9380
Fax: 62 21 21 460 1970
web site: www.gikoko.co.id

STARCH TECHNOLOGY CENTER (B2TP)- BPPT

BPPT Building II, 16th fl.
Jl. M.H. Thamrin 8, Jakarta
Tel. 021 3169598