Estimated Price of Ethanol Fuel in Indonesia, More Expensive Than Pertamax

KatadataOTO – Fuel prices in Indonesia are expected to be adjusted following the implementation of a 10 percent ethanol mixture.

Ethanol material will also likely be imported first while waiting for the domestic ecosystem to be ready.

Currently, the price of 99.5 percent pure ethanol or E100 is known to be around Rp 16 thousand per liter.

“Based on engineering calculations, the price of ethanol for Indonesia's case is around Rp 16 thousand per liter,” said Ronny Purwadi, an academic from the Faculty of Industrial Technology at the Bandung Institute of Technology (ITB) in Jakarta recently.

Photo : Special

Roughly calculated, E10 means using only 10 percent ethanol at a cost of Rp 1,600, which is 10 percent of the ethanol price of Rp 16 thousand.

For comparison, the price of RON 92 fuel from Pertamina, Pertamax, is Rp 12,200 per liter.

If an ethanol mixture is added, the price of Pertamax will increase to 13,800 per liter.

Meanwhile, the subsidized fuel Pertalite, sold at Rp 10 thousand, could potentially rise to Rp 11,600 when mixed with ethanol.

“That's for E10. E20 would mean a higher price, of course,” Ronny explained.

However, Ronny emphasized that the government needs to prepare so that ethanol does not rely on imports forever.

The hope is that ethanol will not only help reduce fossil fuel imports but also have a positive effect on the agricultural sector as the provider of its raw materials.

“The Minister of Trade must be wise in creating regulations. Import, but don't kill the industry; improve it so that over time it can compete,” Ronny asserted.

Speaking of importing ethanol as a start for implementing E10 in Indonesia, Ronny revealed that there are several potential countries.

“We can import from Pakistan, if I'm not mistaken. The United States too, of course,” said Ronny.

Photo : Antara

For your information, the discourse on implementing E10 fuel in Indonesia is not new.

However, the plan resurfaced when several private gas station (SPBU) brands canceled using Pertamina's base fuel due to its three percent ethanol content.

The percentage of ethanol in Pertamina's base fuel was deemed not to comply with the specifications and regulations of the private gas stations.