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
Ethanol
Plant Part of Plant Productivity(L/ha/yr)
Cassava Root 4,500
Sweet potato Root 7,800

Sugar Cane Stalk 5,000 6,000

Molasses 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 Productivity Avr production
Province (mil. ha) (ton/yr) (t/ha)
North Sumatera 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

Indonesia 1,239.86 18,473.96 14.90

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 2006 2010 2011-2015 2016-2025

Bioetanol supply 1.48 mil kl Bioetanol supply

Bioetanol supply
Market (10% of total gasoline 6.28 mil kl ( minimal 20 % of
2.78 mil kl ( 15% of total
consumption) total gasoline consumption)
gasoline consumption)

Product Gasohol E-10 Gasohol/ FGE (Bioetanol from Gasohol/ FGE (Bioetanol from
(Bioetanol from cassava & molasses) cassava. starch & molasses) lignocellulose.starch and cassave )

NATIONAL STANDARAD OF FUELGRADE FOR GASOHOL & ETHANOL (FGE)

Technology
Technology
Status
Bioetanol production 99.5% (FGE) with Bioetanol production 99.5% (FGE)
Bioetanol production 99.5% (FGE) by
production rate and high energy ratio from lignocelulose fibre
chemical dehydration technique and
based on cassava and starch feedstock for (agriculture/forest waste).starch and
molecular sieving of molasses feedstock
based and commercial scale commercial scale cassava (incl. algae) at commercial
scale

Bioethanol
R & DR&D Dehydration Membrane
with adsorben technology for
dehydration Lignocellulose as
Fermentationpr bioethanol feedstock
ocess and fuel
technology

Carbohydrate resources
for bioethanol feedstock
Strain yeast
improvement

Source : DJLPE. 2007

 Road map for Bioethanol
Industry Plant Construction

Demo plant
BPPT
88KL/day
kL/hari
Pembangunan
The construction of The construction of
Pembangunan
104
104 plant
plants@ 60kL/hari
@60 KL/day 62
62 plants
plant @@60 KL/day
60kL/hari The construction of114
Pembangunan 114plant
plants@@60 KL/day
60kL/hari

2005 2007 2009 2010 2013 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)
Production
Name of Company Location Capacity Feedstock
(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

PT Madu Baru Yogyakarta 6.720 Molasses

PT Molindo Raya Industrial Malang 10.000 Molasses

PT Perkebunan Nusantara XI Bondowoso 6.000 Molasses

PT Rhodia Manyar Gresik 11.000 Molasses

B2TP, BPPT Lampung ~ 30 Cassava

Source : Kompas. April 19. 2006. 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 255.50 145,726

Philippines 7,374.405 2,609,972

Malaysia 12.8 7,672

Taiwan 4,982.963 2,948,038

Thailand 12.8 7,890

Others 87.662 115,382

Total 22,198.43 9,180,498

Source : Kompas. April 19. 2006
 Indonesia Ethanol Export
(2000 2004)
Year Capacity In US$
(ton) (x 1000)
2000 30,197 9,857
2001 18,291 7,257
2002 27,518 10,757
2003 26,536 10,585
2004 22,198 9,180
Total 124,740 476.36
Source : Kompas. April 19. 2006
 FUTURE ETHANOL PLANTS IN INDONESIA
Production
Name of Company Location Capacity Feedstock
(Kiloliter/y)

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 ? ? Cassava &

Energy Molasses
PT Medco Energi Internasional Tbk Kotabumi ? Cassava
PTPN X & PT Molindo Raya Industri Kediri 120 Molasses

Source : From Kompas & Sinar Harapan. July 2006 March 2007.
 Example of Countries with Bioethanol Application

Country Description
The largest producer of ethanol from sugar cane in the world with annual
Brazil 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.
The second largest producer after Brazil. The annual production is more than 10
USA billion liter, however, this is only 2% of the total usage of fuel. The new
legislation will increase the use of bioethanol.
Third biggest producer. The processing method came from Brazil and now is
China constructing new ethanol plants to increase their production.

To increase the use of biofuel, the government has issued tax exemption policy.
Germany
To treat used cooking oil collected from McDonalds to drive public buses at
Austria Graz.
. The test on ethanol mixed with petrol in public buses at Stockholm showed
Sweden that big vehicles which have high fuel consumption can also use with the lower
cost fuel such as bioethanol.
They have biodiesel plants from various grains which can be harvested in short
Ghana time. From this they can saved imported fuel up to 240 million US$.

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

 Continue
Country Description
E10, Gasohol. Target from December 2005, increased filling station from 829 to
Thailand 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.
Biopremium (E5, 5% ethanol & 95% petrol) and biopertamax (E5, 5%
Indonesia 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.
E3. Ethanol Import from Brazil.
Japan

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

 Fuel Grade Ethanol (FGE) Production Flow Diagram
Based on Cassava
Molasses
Yeast
Amylases

Cassava
Cooking and
Pretreatment Fermentation
Saccharification

Distillation Dehydration FGE

(Ethanol 99.5%)
Source : B2TP-BPPT
 2. Crusher 3. Cooking tank
1. Cassava from plantation

Ethanol
95% v/v

4. Saccharifying tank
6. Distillation column 5. Fermentor

Cassava Ethanol Production Flow Diagram

Source : B2TP-BPPT
 R&D of Bioethanol from Cassava
Cassava Fermentation Using Pilot Plant of 8 KL/Day
Broth Total Sugar Ethanol Ferm.Ratio Ratio of
volume (%) (%) Cassava/
(liter) Ethanol
Start Finish

102.367 14.39 1.81 9.0 97.12 5.27

101.990 14.82 0.40 9.4 98.50 5.20

100.196 14.91 1.80 9.2 92.80 5.34

BPPTs 8 kL/day Ethanol Pilot Plant at

Lampung, Established in 1983 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
Source : B2TP-BPPT
 Engine Performance & Emission Testing using
Chassis Dynamometer
Light Duty Gasoline
Short Modal Ambient & Sample
Typical System Schematic Gas Collection Bags

Driver Aid CVS Sampler CVS Control Unit

Ambient
Fan Air Filters

Dyno Dilute
Control Turbine
Sample 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 Premium Gasohol E10
(km/hr) (second) (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%
Source :
5. Lamda 0.827 0.862 Otomotif 18th Ed.,
Sept 5, 2005
Toyota Kijang Car Performance Test Using Gasohol

Fuel Gasohol Gasohol Premium Pertamax

E-10 E-20
Power (kW) 41.23 42.52 30.97 40.09
Force (N) 1856.1 1913.3 1393.8 1804
Fuel Consumption 30.39 31.24 31.03 27.38
(L/jam)

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