Sci&Tech History

In 2006, government launched Presidential decree numbered 5/2006 on “National Energy Mix” which targeted bio fuel as a source to fulfill 5% of national energy need on 2025, followed by presidential instruction numbered 1/2006 on “Supply and Utilization of Bio fuel as Alternative Fuel”, presidential decree numbered 10/2006 on “The Establishment of National Team for Bio Fuel Development to Accelerate Poverty and Unemployment Reduction,” Government Regulation No. 1/2007 on “Income Tax Facilities for Investment Activities in Specific Industries and/or Particular Region,” and Government Regulation No. 8/2007 on “The Government Investment.” These regulations are a part of government policy to support bio fuel development in Indonesia by creating job for 3.5 million people unemployment, increasing income for on-farm and off-farm workers in bio fuel sector up to the Regional Minimum Payment, development of bio fuel plantation in 5.25 million ha land, 1000 energy self sufficient villages and 12 special bio fuel zone, fossil fuel reduction until minimum 10%, and accomplishment of bio fuel local demand and export in 2010 (DESDM, 05/07).

From the newspaper report, increasing income for on-farm and off-farm is still a big questions. Many bio fuel implementation makes the farmer confuse and disappointed because after they plant Jatropha, the party that promise to buy their plant doesn’t keep their word. In another case, the price that is offered is too low.

Popularity: 23%