JAKARTA, 26 July 2006 - The Indonesian government plans to ban ethanol export due to growing domestic demand in line with the expansion of biofuel industry, a senior official said Tuesday. Industry Minister Fahmi Idris said he has submitted proposal to close ethanol export to the trade minister and the forestry minister.

"Production is very limited while demand is on the rise for biofuel industry," he said in a seminar hosted by the Indonesian Chamber of Commerce and Industry (Kadin). Indonesia produces 170 million liters of ethanol a year, he said. Domestic market accounts for 84 percent of national ethanol sales, with beverage and pharmaceutical industries as the biggest consumers.

The new demand from biofuel industry threatens ethanol supply in the future, he said.

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