Jakarta (Indonesia Window) – The Indonesian government along with some institutions have signed a Memorandum Understanding (MoU) in the field of energy and mineral resources research and development.

The document was signed by the Indonesian Energy and Mineral Resources Research and Development Agency, the National Palm Oil Plantation Fund Management Agency, and the state-owned enterprises of PT Pupuk Indonesia (fertilizer manufacture) and PT Pertamina (oil and gas), as well as Bandung Institute of Technology (ITB).

The signing was witnessed by Energy and Mineral Resources Minister Arifin Tasrif after delivering the National Policy and Strategic Program in the field of Energy and Mineral Resources at a public lecture at the ITB campus on Wednesday.

A press statement from the Indonesian Ministry of Energy and Mineral Resources explained that the cooperation would encourage the development of a biohydrocarbon plant in the area of ​​the National ertilizer factory of Pupuk Sriwijaya in Palembang, South Sumatra.

The plant will produce biohydrocarbon diesel oil, especially Bioavtur J100, which will be used for property, tests and flight tests.

The pilot plant is designed to produce 1,000 litres of biohydrocarbon or bioavtur diesel per day.

The budget for the construction and operation of the factory is around US$5.3 million.

The biohydrocarbon pilot plant is designed to process raw materials in the form of industrial vegetable oil (IVO) into diesel biohydrocarbons, and industrial lauric oil (ILO) into bioavtur.

"The completion of the plant construction project will encourage the realization of the first biohydrocarbon refinery in Indonesia and provide added value to the country," Minister Arifin said.

According to him, the first development agenda in the field of energy and mineral resources is to strengthen economic resilience by increasing the proportion of renewable energy in the energy mix by 19.5 percent, building 3.7-gigawatt renewable energy plants, utilizing 17.4 million kilolitres of biofuels, and building 52 smelters throughout the country.

The government will also increase domestic gas utilization to 68 percent, produce 628 million tons of coal and of 187 million tons of DMO (Domestic Market Obilgation) coal, as well as lift oil and gas 2,057 thousand BOEPD consisting of 743 thousand BOEPD oil and 1,314 BOEPD gas.

Reporting by Indonesia Window