Bioethanol factory under partnership scheme between Indonesia through PTPN X and japan through the new energy and industrial technology development organization (NEDO) grant aid. The factory is expected to start operation in February 2012. According to president director of PT Perkebunan Nusantara (PTPN) X, subiyono, who is accompanied by the manager of bioethanol project of PTPN X, Nur Iswanto, after signing of implementation Document (ID) of the partnership project in Jakarta on Thursday (April 21), the factory is planned to produce 30,000 kilolitres of bioethanol a year. Bioethanol production will be distributed to pertamina. Yet, however, if bioethanol production cannot absorbed by domestic market, some trading companies from overseas will buy the bioethanol. We will try to produce added value in the production of sugar factory Gempol Mojokerto owned by PTPN X. his project is considered feasible due to sufficiency of raw material, financial capacity, human resources, technology, and a willingness to do dissemination in the implementation of this project model” subiyono said. Director general of manufacturing industry base of ministry of industry, panggah susanto, said “the concept of sugar factory intefrated with a bioethanol factory is the model of a modern sugar industry through the creation of added value of agricultural products from the upstream to the downstream sectors” On August 2, 2010, a memorandum of understanding (MoU) for bioethanol production was signed is in the form of USD 16 million grant from the Japanese government and USD 9.5 million contribution from Indonesia. Until now, a major part of molasses production is sold as export commodity in crude form, and is not yet utilized optimally as raw material for industry, amongst other, chemical and cosmetic industry. With a purification process, molasses can be used more optimally as raw material for industry. Another aspect of the partnership is a potential claim about attempt to reduce carbon emission in the framework of Certified Emission Reductions (CERs). Reduction of carbon emission as a result of bioethanol production which will reduce consumption of fossil fuel. Claims of carbon credit under the partnership project will be submitted to the United Nations. And if it is approved, Indonesia will be considered positively by the international community.