The building at the side of the alternative road to Sukabumi is hidden among the cassava garden. No one would have imagined that inside the 3 times of volleyball court size building, Soekaeni manufactures cassava tubers into 2.100 liters of bioethanol every month and he trades the 300 liters to the premium retailer and the 800 liters to the gatherer of the chemical industry. The selling price for those two consumers is the same: Rp10.000 per liter, therefore the retired man of PT Telkom obtains Rp21-millions turnover per month.The cost to manufacture a liter of bioethanol with cassava as the base material is around Rp3.400-Rp4.000. A liter of bioethanol is made from 6,5 kg of cassava. From trading bioethanol, the man who was born in September 6th, 1950, obtains net profit Rp12-millions per month. Beside cassave, now he is also utilizing molasses or sugar cane waste as base material. His bioethanol is being used as a premium mixture by para tukang ojek-people who give public transportation service using motorcycles-in Nyangkowek, Cicurug Subdistrict, Sukabumi Regency, as fuel for motorized vehicle. A liter of premium is mixed with 0,1 liter of bioethanol.
Despite the fact that bioethanol price is higher than premium, para tukang ojek still buy it due to the better machine performance and the more efficient fuel consumption. Last year, the popularity of bioethanol alias ethanol which is processed from plants and biodiesel or oil for diesel machine is indeed increasing. Both-bioethanol and biodiesel-are phyto-fuel. Along with the trend, home industry manufacturers appear. According to Eka bukit, a bioethanol manufacturer, the scale criteria of home industry is if the maximum production is 10.000 liters per day.
At present, the production volumes of home industry scale are vary, from 30 liters up to 2.000 liters per day. Beside Soekaeni in Cicurug, Sukabumi, there is also Sugimin Sumoatmojo. The people of Benoang, Sukoharjo Regency, Central Java, manufactures 1.500 molasses alias sugar plant waste into 500 liters of bioethanol per day. In order to produce 1 liter of bioethanol, the man who was born in Desember 31st, 1947 needs 3 liters of molasses.
He obtains profit Rp2.500 per liter, therefore, his net profit is up to Rp1.250.000 per day. In a month, the machines on the average work 30 days, thus, the total volume of production reaches 15.000 liters which give him total net profit Rp37,5-million per month. In Bekonang and its vicinity, home industry scale of bioethanol manufacturers are mushrooming. According to Sabaryono, the chief of Paguyuban Perajin Bioetanol Sukoharjo, there are 145 manufacturers in total.Plenty material
The home industry scale manufacturers' list is even longer if we write them down one by one. They are spreading in Sukoharjo, Pati, (Central Java), Natar (Lampung), Sukabumi (West Java), Minahasa (North Sulawesi), and Cilegon (Banten). Those small manufacturers sniffes the bioethanol market opportunity due to plenty of base material, an easy manufacturing process, and a wide market.
According to Dr Arif Yudiarto, a bioethanol researcher at the Centre for Starch Technology (Balai Besar Teknologi Pati), there are 3 groups of plants which become the bioethanol source. They are plants containing starch, sugared, and cellulosa fiber. Some known plants as bioethanol producers are sugar palm with the production potention 40.000 liters per acre per year, corn (6.000 liters), cassava (2.000 liters), sorgum seeds (4.000 liters), paddy straw, and sweet potato (7.800 liters).
In principle, bioethanol manufacturing is through fermentation to break protein and distillate, in other words a quite easy distillation, so it is easy to be implemented. It is unlike the biodiesel manufacturing process which has to go through esterification and transesterification technology. In addition, bioethanol is not a new stuff for Indonesians. In Singosari Kingdom era-700 years ago-the Javanese had known ciu alias bioethanol from the sugar cane drop. That was due to the fact that the Kubilai Khan's army who taught them the manufacturing process.
Then what about the market? Eka Bukit who manufactures sugar palm sap is unable to handle endless demand supply. He can not supply at least 275.000 liters of routine demand per month. The demand comes from the pharmacy and chemical industry. 'The market is enomoursly huge,' said the alumnus of Carlton University. Therefore, Eka is building a bioethanol manufacturing plant in Lebak Regency, Banten. According to Indra Winarno, the director of PT Molindo Raya Industrial, a manufacturer in Malang, East Java, the ethanol demand is 'unlimited.'Direct supply
As a premium fuel substitution, bioethanol demand is very high. Let's count. 'The national gas need reaches 17,5-billions per year,' said Ir Yuttie Nurianti, the manager of Pertamina New Product Development. Yuttie explained that 30% of the total needs are imported. As it is mandated in the Government Regulation No 5/2006 within the period of 2007-2010, the government is targeting to substitute 1,48-billion liters of gasoline with bioethanol due to petroleum reserves is running low.
The percentage will increase up to 10% in 2011-2015, and 15% in 2016-2025. in the first period of 2007-2010, for 3 years the govenment needs 30.833.000 liters of bioethanol per month on the average. From the total needs only 137.000 liters of bioethanol per month or 0,4% is fulfilled. It means in every month the government is lack of 30.969.000 liters of bioethanol for fuel.
The enormous market segment has not been fulfilled due to the fact that the only supplier which supply Pertamina is PT Molindo Raya Industrial. From 150.000 liters of production, Molindo supplies 15.000 liters per day. Molindo sells biopremium through Pertamina Rp5.000 per liter.
Is it possible that a home industry scale manufacturer supplies to Pertamina? Yuttie said to Trubus reporter, Imam Wiguna, 'Pertamina accepts no matter how much bioethanol supply from the private party as long as the supply is qualified.' The qualification is having the minimum 99,5% ethanol content. The bioethanol of home industry scale manufacturers' distillation output on the average has 90-95% ethanol content. In order to cope with the condition, the manufacturers can immerse an absorber for example limestone and zeolit until the ethanol content soar significantly.
In addition, the supplier should have phyto-fuel trading exertion permission from the Minister of Energy and Mineral Resources. The chief of Phyto-fuel National Team, Ir Alhilal Hamdi is attempting to establish the relation between Pertamina and the home industry scale manufacturers easily. 'We will facilitate in order to create the easiest mechanism for small industry to supply to Pertamina without agents because using agents requires a budget. Another way is the supply can be directly delivered to the gas station (SPBU) because Pertamina link is very vast,' said the former Minister of Manpower and Tansmigration. Regarding the buying price, Yuttie stated, 'The manufacturers must offer a competitive selling price.' At present Pertamina buys 1 liter bioethanol for Rp5.000.
After all, the home industry scale is also given a chance to mengoplos or in other words mix bioethanol and premium by themselves to be marketed. The manufacturers who mix bioethanol and premium do not have to be afraid of being seized by the apparatus for it is actually protected by laws. The rejoicing thing is that bioethanol for fuel is duty free. It proves the government seriousness to enhance bioethanol as renewable energy source.Blue sky
The usage of bioethanol as fuel also gives positive impact. Many valid researches have proven it. Dr Prawoto, the chief of Centre for Thermodynamic, Engine, and Propulsion (Balai Termodinamika, Motor, dan Propulsi), the Agency for the Assessment and Application of Technology (Badan Pengkajian dan Penerapan Teknologi), for example, proves that machine performance is better after being given bioethanol mixture. A similar research was also done by Prof Dr Ir Djoko Sungkono from Institut Teknologi Sepuluh Nopember Surabaya majoring Mechanical Engineering.
Prawoto's research result shows, by using bioethanol mixture, the fuel consumption is more eficient. The E2 car or the one which is given 20% bioethanol mixture, at 30 km per hour speed, the fuel consumption is 20% more eficient than the car using gasoline as fuel. If the speed is 80 km per hour, the fuel consumption will be more efficient 50%. How is so? The burning is more eficient because ethanol is burnt faster than pure gasoline. Obviously, the more bioethanol mixture used, the burning process becomes shorter.
The perfect burning is due to octane number bioethanol is higher than gasoline. The gasoline octane value is only 87-8; while bioethanol is 117. When the two substances are mixed each other, they will increase octane value. For example is the addition of 3% bioethanol jacks up octane value 0,87%. '5% ethanol content increases 92 octane up to 94 octane,' said Sungkono, the alumnus of University of New South Wales, Sydney.
The higher the octane number is, the more endurable the fuel not to be burnt by itself so that it yields the stability of the burning process to obtain more stable power. Only 3% bioethanol mixture can decrease the carbonmonoxyde emission becoming 1,35%. Compare if the vehicle uses premium, the carsinogenic emission alias cancer agent is 4,51%. So, if the bioethanol content is increased, the emission will be more decreased. The blue sky programme which is proclaimed by the government will be easier to be realized. The effect is the society becomes healthier.
At present, bioethanol mixture inside premium for conventional cars is 10% maximum or E10. Even in Brazil, conventional cars use E20 alias 20% bioethanol mixture without modifying the engine. The use of E100 or E80 in conventional cars without engine modification is not suggested because fear of damage to the engine. However, now that flexi cars or flexible cars appear, either 100% bioethanol or 100% premium can be used. In the United States there are 5-million flexi cars with the increament of 1-million vehicles per year.Fight for the base material
Eventhough there are a lot of peculiarities, bioethanol business is not without obstacle. One of the business obstacle is the limitation of base material supply. At present, the majority of manufacturers are depending on molasses as base material. Whereas, the sugar plant waste is also needed by other industries such as ketchup and flavouring spice factory. In fact, some others are exported. Indra Winarno said that molasses has become the black gold lately.
The impact is economic law arises. So much demand make base material buying price soar so as the bioethanol manufacturers' margin shrinked. Some manufacturers preferred cassava as alternative. Many of them surpressed their investment in Lampung because the province is the biggest cassava producers in Indonesia. Their presence turns out to jack up the cassava price there.
'The price used to be Rp300 per kg. Now it is more than Rp400,' said Donny Winarno, the vice president of PT Molindo Raya Industrial. The increasing price is a blessing for the farmer. On the other side, it gives the manufacturers hard times. 'I hope the government issues a policy that also protect the manufacturers,' said the alumnus of University of California.
When the obstacles are overcome, the manufacturers can obtain income from bioethanol drop. The thing is, the bioethanol market-as fuel-is indeed huge due to the motorized vehicle population is increasing. According to the Indonesian Motorized Vehicle Industry Union (Gabungan Industri Kendaraan Bermotor Indonesia), the car selling is increasing on the average 53.400 unit per year. The car owners do not need to modify the engine in order to be able to use the bioethanol mixture.
The market is wider and better when the fuel subsidy which was worth Rp1.681,25 per liter was withdrawn. With the need of 17-billion liters, the goverment spends Rp28,6-quintillion fund per year. Apart from the fuel issue, the bioethanol market segment remains big. It is because many industries need it. Just for example, the industry of cooking spices, talcum powder, paint, pharmacy, carbonated drink, cough medicine, toothpaste and mouthwash, perfume, and cigarette also need it.
Even, ink industri also needs bioethanol. The product is functioned as solvent, vinegar substance, and asetaldehyde. According to Ir Agus Purnomo, the chief of the Indonesian Association of Methylated Spirit and Ethanol (Asosiasi Spiritus dan ethanol Indonesia (Asendo) ), the ethanol needs for industry on the average is 140-milion liters per year.Glowing investment
With all the advantages stated above, the use of bioethanol seems more pressing. It is not only because the industry becomes the locomotif of the economic development and creates work field, but it is also because the petroleum price which is estimated to soar up to US$100 per barel (1 barel = 117,35 liter) in the following years. It is the reason why Johan Bukit, a bioethanol manufacturer, estimates, 'Whoever the chosen president is, in 2009 it is not easy to maintain the fuel subsidy.'
Such condition encourages a lot of investors to invest their capital to build green refinery or in other words renewable energy. Johan Arnold Manonutu, for example, works out a partnership with the people of South Minahasa, South Sulawesi. The only son of the former Minister of Information in Bung Karno era spent millions of Rupiah fund to buy 5 units of bioethanol manufacturing machine each with a capacity of 200 l/ day.
The machines are 'lent' to the people of Menara village, Amurang Timur Subdistrict, South Minahasa Regency. 1 unit of the machine is managed by 3 people. Johan intercepts their manufacturing output which reach 1.000 liter in a day, with the price Rp6.000 per liter. 'The price is higher than the rat brand which is only Rp300 per liter,' he said. The rat brand means the distillate of sugar palm sap with 35% ethanol content which is normally used for an alcohol drink substance.
Johan markets the ethanol to some hospitals for sterilization. With the selling price Rp16.000-Rp17.000 per liter, his turnover is Rp16-millions-Rp17-millions per day. Edy Darmawan from PT Indo Acidatama is planning to build a manufacturing plant which has the capacity of 50-millions liter per year in Lampung. So is Sugar Group Company (SGC), the owner of 3 giant sugar plants which built the same plant with the same capacity in Central Lampung. They whiff big opportunity by building the environment friendly green refinery.
Its market segment is spreading out widely, the price is sufficient, it even can be used for self-needs. It is bioethanol, the 'gasoline' of plants. Do you want to build refinery on your frontyard in order to taste the sweetness of bioethanol business
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