economy

This Company From Central Java Is Competing On A Global Scale By Manufacturing Microalgae Biotechnology Products

The potential of utilizing algae, both macroalgae and microalgae, in Indonesia is enormous to produce high-value-added products. One of the potentials that can be further developed is microalgae, which can be processed into various raw materials for food, medicines, animal feed, and biofuels.

The development of the microalgae processing industry as a natural resource is one of the priority policies implemented by the Ministry of Industry, namely downstreamingagro-based industries. In addition, the utilization of biotechnology is the key to realizing the concept of sustainability that needs to be adapted by industries to align their development with environmental sustainability.

"Microalgae are very prospective for development in Indonesia because they are supported by adequate environmental conditions," explained Minister of Industry AgusGumiwangKartasasmita during a visit to PT Evergen Resources on Friday (28/6).

Indonesia's advantages for microalgae development include abundant sunlight, warm temperatures, and sufficient land. Microalgae are a source of raw materials for food products, cosmetics, and supplements, environmentally friendly fuels for aircraft, and even crude oil. Microalgae also absorb CO2, which can be utilized by industries in emission management.

One effort to develop microalgae biotechnology in Indonesia has been initiated by PT Evergen Resources. The company, located in Kendal, Central Java, processes Haematococcuspluvialis microalgae that can produce astaxanthin.

This substance is a carotenoid that serves as a protector against the oxidation of polyunsaturated fatty acids (PUFA), can enhance immune responses, and protect against the negative effects of ultraviolet rays.

Evergen cultivates microalgae using a closed photobioreactor system to produce AstaLuxe™.This product has high antioxidants that are applied to health supplements, medicines, cosmetics, food and beverages, to animal feed products.

Furthermore, astaxanthin has potential with market drivers such as an increase in the number of health-conscious consumers who desire natural antioxidant products. Moreover, the world's population is aging, leading to an increase in anti-aging products, the rise of vegan and plant-based diets derived from micro and macroalgae products, as well as the development of microalgae cultivation technology and extraction processes to enhance production efficiency.

However, challenges in the development of astaxanthin are still quite significant. For example, high production costs and R&D costs lead to limited consumer purchasing power and market expansion. Additionally, there is vulnerability to contamination in production, requiring layered quality control, and a fairly competitive market with key players from countries with advanced technology.

"Hence, strategic collaboration is needed between the government, educational institutions, research institutions, and industries to accelerate product development and market penetration policies," explained the Minister of Industry.The Minister of Industry also encourages companies to develop microalgae for processing into other products, such as biofuels. "For development into biofuels, support is needed from the industries that use them, such as Pertamina for the provision of production and storage facilities," explained the Minister of Industry.

The Director General of Agro Industry, Putu JuliArdika, added that PT Evergen Resources started producing astaxanthin from scratch in 2012. The astaxanthin market itself continues to grow, with the largest market still in North America and Europe. "In Indonesia, there are no competitors for the astaxanthin-producing industry, and the producers are also less than 10 companies worldwide," he explained.

Tag: Biotechnology Microalgae