Jakarta, Oct. 29 -- The Ministry of Industry considers East Java Province to have high potential as a location for the construction of an ethanol plant in support of the mandatory 10 percent bioethanol blend (E10) in fuel.

"The most potential location is in East Java because of its molasses content," the ministry's Acting Director General of Agro-Industry, Putu Juli Ardika, said on Wednesday.

Molasses is a byproduct of the sugar processing industry, particularly sugarcane and beetroot, which can be processed into bioethanol.

Currently, the government has allocated Rp1.6 trillion (US$93 million) for the ratoon removal program, which involves rejuvenating unproductive sugarcane plants.

Of the Rp1.6 trillion allocated, the ratoon removal...