Pertamina, the state energy company of Indonesia plans to increase ethanol blending in gasoline products to offer alternative fuels to the public, said the company’s chief executive on Monday, reports Reuters.
The company is set to enhance the quality of its widely used 90-octane gasoline, known as Pertalite, by introducing a 7% ethanol blend, as highlighted during a parliamentary hearing by Nicke Widyawati, the company’s representative.
Furthermore, Pertamina is gearing up to elevate the ethanol content in another fuel variant, Pertamax Green 95, from the current 5% to 8%. Currently, this fuel is exclusively accessible at 17 fuel stations in Jakarta and Surabaya, the two largest cities in Indonesia.
To achieve these ethanol-enhanced fuel formulations, Pertamina plans to import ethanol due to the limited domestic production capacity of this biofuel, which is derived from sugar molasses. Indonesia’s current annual production of fuel-grade ethanol hovers around 63,000 kilolitres. Although an exact import quantity wasn’t provided, Nicke emphasized that the import will replace some gasoline imports with ethanol, offering emission benefits.
The distribution of these new biofuel blends at Pertamina’s petrol stations for the upcoming year has yet to be finalized, according to Pertamina spokesperson Fadjar Djoko Santoso. There’s also uncertainty regarding the potential impact of this initiative on Indonesia’s fuel subsidies, particularly concerning Pertalite, which currently enjoys government-subsidized pricing at 10,000 rupiahs (equivalent to 65.6 U.S. cents) per liter. As of now, Pertamina has not engaged in discussions with the government regarding these subsidies.
