ETHANOL PRODUCTION MAY GAIN RP3.5 TRILLION

Manado, Jan 22 (ANTARA) - The North Sulawesi Provincial Administration has estimated that the maximum and most efficient production of ethanol from sugar palm and its derivatives a year may reach Rp3.5 trillion.

"We lack the technology in producing the biofuel fuel, so that the available and existing potentials have yet to be used optimally," Head of the economic division of the North Sulawesi provincial administration Robby Assa said here Friday.

It is quite a pity, especially that the province is known for its wide sugar palm estates, but which are mostly used for the production of capticus and red sugar.

"Ethanol is environmentally friendly and less costly compared to premium gasoline, diesel oil and the other fuel oils used on motor vehicles," he said.

Besides palm sugar which had become a leading commodity in the province, coconuts and castor oil are also highly potential for development into ethanol fuel.

He said it takes only 5,000 ha of coconut trees to produce ethanol with a profit of more than Rp3 billion, and Rp 1.7 trillion from copra.

"In another research, only 10% of the biofuel if mixed with premium will produce pertamax," he said.

Up till now the people are still relying on copra and capticus, although they have to deal with the law in most cases in the production.