JAKARTA- A team of experts advising Indonesia’s president-elect Prabowo Subianto are reviewing a scheme to impose levies on sugar imports to help finance the country’s bioethanol program, a member of the team said on Thursday.
Wider adoption of biofuel, both palm oil-based biodiesel and in ethanol fuel, is part of the energy transition agenda by Prabowo who will take office on Oct. 20.
Indonesia, however, does not have enough production of sugarcane, the main bioethanol feedstock, for its domestic demand and still relies on imported sugar.
Meanwhile, production cost of bioethanol in Indonesia is currently higher than production cost of gasoline per liter, making it unattractive for producers.
To help finance the price gap, experts advising Prabowo are reviewing the feasibility of imposing levies on imports of sugar, said Ali Mundakir, a member team advising Prabowo.