Merauke Bioethanol Plant Targeted for Completion in 2027, Set to Produce 3 Million Tons
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JAKARTA, Investortrust.id — The Indonesian government is pressing ahead with the construction of a bioethanol plant in Merauke, South Papua, with completion targeted for 2027. The facility, part of a National Strategic Project, is expected to reach a production capacity of around 3 million tons.
The project was officially launched in July 2024, when former president Joko Widodo planted the first sugarcane at the site, symbolizing its dual purpose of boosting domestic sugar supply and advancing bioethanol development.
“For Merauke, this is focused on bioethanol. The process began with the planting carried out by President Jokowi last year, and the construction of the plant is expected to be completed in 2027. Progress is ongoing,” said Deputy Minister of Energy and Mineral Resources Yuliot Tanjung during the Investortrust Green Energy Summit 2025 at the JW Marriott Hotel in Jakarta on Tuesday, Sept 23, 2025.
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Yuliot emphasized that the project has already generated tangible benefits for local communities, especially through job creation. More than 3,000 workers have been employed since the project began, mostly in plantation preparation and related activities.
“We hope this first plant can be developed smoothly. Communities are already engaged in plantation work, and more than 3,000 people have been absorbed into the workforce,” he noted.
The government expects the facility to strengthen Indonesia’s energy security while accelerating the national energy transition. Once fully operational, the plant will have the capacity to produce up to 3 million tons of bioethanol.
“Production capacity will be built up in stages. If I am not mistaken, the total target is around 3 million tons. This requires us to go step by step, through licensing processes as well as the plant’s construction phases,” Yuliot explained.
The project is being developed by PT Global Papua Abadi on a 2 million hectare concession. Officials said the large-scale land development aligns with broader government efforts to secure food self-sufficiency.
Bioethanol is a renewable fuel derived from biomass through fermentation. Its use is considered strategic, as it can be blended with gasoline to reduce vehicle emissions and curb dependence on fossil fuels.