Jakarta. The Agriculture Ministry is preparing up to 2 million hectares of farmland to support the development of the country’s bioethanol industry, with sugarcane, cassava and corn identified as key feedstocks.

Agriculture Minister Andi Amran Sulaiman said the government would prioritize securing raw material supplies before expanding bioethanol processing facilities nationwide, as reliable feedstock availability would be essential to attracting investment.

“Ethanol needs 1 million to 2 million hectares of land with three strategic commodities. We will build the factories and develop them massively across Indonesia,” Amran said after meeting with 44 regents in Jakarta on Monday.

Sugarcane will be a key priority because of its potential for bioethanol production, while cassava and corn will be cultivated in areas with suitable land and high productivity, he said.

The planned development could involve state-owned enterprises (SOEs) and private companies. The government would prepare the land, while private investors could provide much of the funding for processing facilities.

Funding could be 30% from state-owned enterprises and 70% from the private sector. The private sector will certainly be interested because the land is prepared by the state,” Amran said.

The minister said the development should not be monopolized and must deliver direct benefits to local communities.

The government plans to establish partnership schemes involving communities in agricultural production and industrial development, with at least 30% of the development allocated to local communities.

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