Biofuel market development in Indonesia and the direction of the status quo

Author:ANROSOFT_market survey report Company,market survey report services.( http://anrosoft.com )

Great potential for bio-fuels market

The case of soaring global oil prices have become increasingly prominent at the moment, the major oil-importing countries in order to reduce the national oil funds to ease the Gasoline Shortages have set our sights on low-cost biofuels. Indonesia, the largest in Asia, can be used in the production of highly efficient bio-fuel resources of the tropical plants. In recent years, the Government strongly supports biofuels research and technology application through the Indonesian National Research Department of the project is hoped that in the initial forming of bio-fuels to dominate the market.

But it was not until last year, the Indonesian government to reduce oil subsidies, the private sector to really start competing for market share of biofuels. Recently, Indonesia’s domestic bio-fuel production potential has been promising, the major domestic manufacturers CPO Astra

Agro Lestari high price. At the same time, Indonesia’s PT BaKrie Sumatera Plantations and PT ReKayasa Industry building companies spend 25 million U.S. dollars China’s first private construction of biodiesel plant. The company plans to use palm oil and castor oil hair and many other raw materials to processing bio-diesel can be produced annually after the completion of 6 ~ 100,000 tons bio-diesel.

In order to encourage people to use bio-fuels, the Indonesian government allocated 33 million U.S. dollars to build the air with four bio-diesel processing plant. Operational by the end of this year’s Kalimantan and Sumatra, two bio-fuel processing plants are expected to reach annual production of 6000 tons.

Indonesia is the world’s second-Nagymaros palm oil producing countries, the majority of hair used in the production of palm oil bio-diesel (bio-diesel can be used directly in diesel engines in general). Look from the effectiveness of Indonesian CPO production of coconut oil, other tropical bio-fuels, and it definitely does not contain sulfur bio-diesel after oxidation of organic oil will not be the same as similar as sulfur oxides and other harmful air

Body. It is for this reason, the global demand for biofuels began to increase, especially in the energy shortage, more emphasis on environmental protection are in short supply in Western Europe. At present, the European demand for biodiesel production accounted for only 1 / 6, if the oil price is still below 60 U.S. dollars / barrel, then the demand for bio-diesel will be even greater.

Urgent need to overcome obstacles

Although rich in resources, but the bio-fuel market in Indonesia has just started, if strong potential, are still many obstacles to be overcome. Such as the high cost of plant, the Government has not given oil palm plantation owners and encourage policy makers, small-scale enterprises can not obtain loans from a range of issues have also hindered the further development of the industry. In addition, the Indonesian government for the waste of natural resources

Wind a long time, because of the lack of proper and effective management and long-term bureaucratic corruption, as a member of Organization of Petroleum Exporting Countries Although Indonesia has a huge energy resources, while domestic oil consumption is imported. Indonesian President Susilo Bambang Yudhoyono is determined to change this status quo. Most recently, he issued a biofuel supply and use of the presidential decree to re-formulate the supply and use of biofuels, the Senate

A few. At the same time, Indonesia is also the efforts of various government departments for the development of bio-fuels industry to clear obstacles: the Ministry of Energy and Mineral Resources is considering the introduction of biofuels for the manufacturer’s incentive policies; the Ministry of Finance also plans to introduce tax and import duty system incentives for bio-fuel production facilities to give preferential imports; around the department of local government to simplify procedures for land use; the Ministry of Agriculture

To encourage the mass production of raw materials; the Ministry of Industry set up factories to streamline procedures … … the Government plans to produce bio-fuels in 2010 will reach 72 million liters in 2010 to 2015, annual output will exceed 150 million liters by 2025 the annual output is expected to reached 470 million liters.

Between the two countries and India will dominate the world biofuel market

At present, Malaysia is the world’s largest CPO producer, followed by Indonesia home alone, the two gross output of palm oil production accounted for 84% of the world, with a total export volume of total world exports accounted for 88%. Hair consultations the two sides are set up palm oil cartel, once the two countries reached an agreement leading to a large extent the world biofuel market. If the development plan as expected, Indonesia’s CPO output this year will reach 15.2 million tons, Indonesia is Asia’s largest manufacturer of bio-diesel has great potential.

In fact, Indonesia and Malaysia have their own strong points of the palm oil production. Indonesia sparsely populated, rich labor resources, but lack of funds and technology to better development and utilization of these advantages; while Malaysia has a skilled production team, but the shortage of land, together with the average level of wages of local workers in Indonesia generally high, the expansion of oil palm cultivation in the area difficult. At present, nearly 25% of Indonesia’s domestic gross production of palm oil produced in Malaysia Investment Corporation. Indonesia’s rich raw materials and cheap labor so that adequate funds, the management of advanced Malaysian companies suffered profit, which led to the Indonesian Parliament to complain about nationalism.

Malaysia has recently purchased a large number of palm trees plantation in Indonesia. Businessmen from other countries rapidly followed. Recently, a U.S. joint venture announced that horse at the Indonesian island of Batam Riau Province Construction of a new bio-fuel processing plant. After large-scale mining and construction, Riau Province of Indonesia has become the largest palm oil processing bases. If the horse printed on the two countries to resolve their differences in appropriate treatment, will the two sides plan to set up the cartel agreement has a lot of help. However, plantation owners are willing to assist the Indonesian government to develop bio-fuels, and replace the export of domestic products has also become a problem. Indonesian palm oil producers Delaume ban Queensland President of the Association said they will if you want to palm oil for the domestic production of biodiesel raw materials, the Indonesian government should “study in Malaysia”, to give a reasonable CPO producer subsidies. If the Government does not give the industry more policy support, they will not sacrifice their own interests.

CPO businessmen face protests, Indonesia Minister of Agriculture Anton Apriyantono Abu played in rock Supporting trump national industry. Him at a recent speech made it clear that for the interests of the country and the nation hope that oil palm plantations in the main part of the expense of developing their own personal interests to bio-diesel industry.

CPO: Friend or enemy of the environment?

Indonesia is able to bio-fuels as a power to promote their new era of economic prosperity? The answer is still unknown, but There is no doubt that bio-fuels on the road to sustainable development is still faced with many problems. The impact of future oil prices, biofuels are the most important questions of development. At present, because global oil prices soaring, people turn to the use of bio-fuels to replace, but once the reply before the level of oil prices, bio-fuel demand will then吗? Secondly, the Indonesian oil palm plantations in Indonesia’s domestic economy and neighboring countries The environmental impact can not be ignored. Recently, the “Friends of the Earth” environmental protection organizations issued a report that oil palm plantations in Malaysia 87% cause the development of the forest destroyed. At the same time, in order to plant palm trees to make land available to be burning forests, resulting in the surrounding country enveloped in smoke and dust in all day. For example, in Kalimantan on the island to build the world’s biggest oil palm processing plant of the General Economic Zone plan was strongly opposed by environmentalists. Here referred to as “the heart of Borneo”, the growth of a vast primeval forest, are recognized on the Earth’s richest biodiversity in the world. World Wide Fund for Nature has warned that the plan would seriously damage the local ecological environment.

The expansion of oil palm plantations of the scale cause-related social problems have caused concern. In Indonesia, oil palm planters often because of land ownership conflicts with the local residents. In order to expand the plantation area, they must drive the local residents. In recent years, there are thousands of generations of indigenous interest were driven to leave the place, which is bound to cause people to act to expand the scale plantations strong dissatisfaction. Indonesian Agriculture Minister Anton – Abu Hartono rock in a few days ago, the government originally planned to be 1.8 million hectares of tropical rain forests to plant oil palm development, but now only 18 million hectares of land, accounting for only plan 10%, but the rest of the land whether or not to continue to expand the plantation area, the Indonesian government is still noncommittal. Indonesian government to develop bio-fuels industry, and how to go the road of sustainable development of the imminent problem.

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