The Construction Of A Methanol Plant Worth IDR 19 Trillion In Bojonegara Is Expected To Be Completed By The End Of 2027

KOMPAS.com/YOHANA ARTHA ULY

The Construction Of A Methanol Plant Worth IDR 19 Trillion In Bojonegara Is Expected To Be Completed By The End Of 2027

Tuesday, 18 Mar 2025

The Deputy Minister of Energy and Mineral Resources, Yuliot Tanjung, announced that the construction of a methanol plant in Bojonegoro, East Java, is expected to be completed by the end of 2027. The investment for this project is estimated at 1.2 billion US dollars, which is about 19 trillion rupiah based on an exchange rate of 15,900 rupiah per dollar. "We hope to finish the methanol industry in Bojonegoro by the end of 2027," Yuliot stated at the Ministry of Energy and Mineral Resources in Jakarta on Friday, March 14, 2025.

The methanol plant aims to support the mandatory biodiesel program, as methanol is one of the alcohols used in biodiesel production. Currently, Indonesia has implemented biodiesel at a B40 level, which means a mixture of 40 percent palm oil (CPO) and 60 percent diesel.

Yuliot added that the development of biodiesel will continue, with a target to implement B50 by 2026. Therefore, sufficient methanol production capacity is needed to meet the growing demand for biodiesel raw materials. This is expected to reduce reliance on methanol imports. "The availability of domestic methanol is still quite limited. Out of the required 2.3 million, we only produce about 300,000 domestically, meaning we still import 2 million," Yuliot explained.

Previously, Minister Bahlil Lahadalia mentioned that the methanol plant in Bojonegoro would be built by domestic investors, without foreign involvement. However, he did not provide further details about the investors involved in the project. "It's a national private investor. The investors are from within the country, no foreign parties," Bahlil said at the Ministry of Energy and Mineral Resources in Jakarta on Friday, January 17, 2025.

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