Jakarta (Indonesia Window) – Indonesia’s Minister of Trade Zulkifli Hasan saw off ethanol exports of PT Molindo Raya Industrial with a value of 818,400 US dollars in Malang district, East Java province, on Friday, to the Philippines and Thailand.

“This industry is very strategic because it takes raw materials from farmers and the products are intended for exports. My arrival here is to show the government's support for strategic efforts like this," Minister Zulkifli said.

Zulkifli Hasan also appreciated PT Molindo Raya Industrial for the implementation of the sustainable concept in its production process.

"I express my gratitude and appreciation to the leadership and staff of PT Molindo Raya Industrial for their contribution to the national economy, not only in terms of exports, but also sustainability and empowerment of local farmers," the minister said.

He believes that Indonesia is capable of responding to the challenges of the global market for high-quality products, and therefore the government will always support strategic industries that are export-oriented, and smallholder agriculture.

"This activity of ethanol exports is expected to be a momentum to encourage the expansion of export market access for Indonesian products in the future. In addition it is hoped to become a driving force for the Indonesian economy in the recovery period after the Covid-19 pandemic," he said.

At least five of the 31 containers were released on Friday and the rest will follow within the next week. The raw materials for ethanol are taken from the smallholder sugarcane farming around the factory by involving no less than 25,000 farmers.

Ethanol exports company

PT Molindo Raya Industrial helps absorb the sugarcane products of people around the factory as raw materials for ethanol. No less than 25,000 East Java farmers supply raw materials to the company.

Besides exporting to the Philippines and Thailand, PT Molindo exports ethanol to other countries including Japan, Singapore and Vietnam.

PT Molindo Raya Industrial, which is the largest food-safe ethanol producer in Indonesia, utilizes around 115,000 tons of molasses waste for its production.

In the international ethanol trade in 2021, Indonesia was ranked 21st as an exporter of ethanol with the level above 80 percent, and during the 2021 pandemic, the value of Indonesia's ethanol exports grew quite significantly by 81.74 percent compared to the value of exports in 2020.

The total value of ethanol exports in 2022 is 67.81 million US dollars, exceeding that in 2019 (before the Covid-19 pandemic) which stood at 46.37 million dollars. In 2020, or during the Covid-19 pandemic, the value of Indonesia's ethanol exports dropped to 37.31 million dollars.

Reporting by Indonesia Window