CONSTRAINTS AND EFFORTS OF BIO-ETHANOL PRODUCTION

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CONSTRAINTS AND EFFORTS OF BIO-ETHANOL PRODUCTION 

Production of ethanol / bio-ethanol must consider its economic interests of the two sides, namely the producers of ethanol / bio-ethanol production plants require raw materials at low prices, and terms of peasant producers 

who want the raw material production plants purchased at high prices and the lowest production costs. This is due to the value of crop production is as expenses for the purchase of raw materials for manufacturers 

ethanol / bio-ethanol. Therefore, the economics of program utilization ethanol / bio-ethanol fuel for vehicles is not only determined by the price of premium fuel, but determined also by the price of raw materials 

manufacture of ethanol / bio-ethanol production plant in this case. 

  

Constraints Development of Bio-Ethanol Production 

In fulfilling the program uses ethanol / bio-ethanol fuel for vehicles, the government has made a road map of bio-ethanol technology, namely in the period 2005-2010 can take advantage of bio-ethanol for 2% of 

premium consumption (0.43 million kL), then in the period 2011-2015, the percentage utilization of bio-ethanol increased to 3% of premium consumption (1.0 million kL), and subsequently in the period 2016-2025, the percentage utilization of bio-ethanol increased to 5% of premium consumption (2.8 million kL). But the road map to realize bio-ethanol technology must involve many parties, both from the government and private. 

Given up to now there is no synergies are realized in a single document a comprehensive strategic plan and integrated, so there will be some obstacles to overcome. Some of these obstacles, including: 

• Plan the development of land for crops producing bio-ethanol feedstock prepared by the Ministry of Agriculture and Forestry Ministry has not been directly associated with the development of bio-ethanol plan in the energy sector; 

• Plan for the Government in energy development and policy instruments required in the development of bio-ethanol has not been directly related to the plans of the parties' business managers bio-ethanol and vast agricultural lands to produce raw materials, and 

• The uncertainty of the investment risk in the commercialization of bio-ethanol development and trade system has not formed the chain of bio-ethanol. 

In order to overcome these obstacles must be supported by the Government's policies on agriculture and forestry-related land use, policy incentives for the development of bio-ethanol production and techno-economic 

utilization of bio-ethanol, so there is clarity of information for entrepreneurs interested in the business of bio-ethanol.

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