The government has begun drafting a roadmap for the development of 50\nper cent ethanol-blended fuel, known as E50. This plan was discussed\nfollowing the proposal of E50 as an alternative energy source during the\nNational Energy Council (DEN) session.<\/p>\n
The Minister of Energy and Mineral Resources, Bahllagil Lahadalia,\nstated that the development of E50 is part of the government\u2019s efforts\nto find alternative energy sources to strengthen national energy\nsecurity. He noted that Indonesia needs to develop energy sources whose\nraw materials can be produced domestically.<\/p>\n
\u201cAs we discussed in the recent DEN session, we are seeking\nalternative energy solutions amidst uncertain global conditions. Today,\nwe cannot place our hopes on other nations, especially regarding\nenergy,\u201d Bahlil said in Jakarta on Monday (21\/9\/2026).<\/p>\n
Bahlil noted that the development of E50 could serve as a\ncontinuation of Indonesia\u2019s success in developing biodiesel up to the\nB50 level. The ethanol used as a raw material for E50 can be derived\nfrom several agricultural commodities, such as sugarcane, cassava, and\nmaize.<\/p>\n
\u201cBuilding on our success in developing biodiesel, we have now reached\nB50, a blend of fossil and plant-based fuels,\u201d he said.<\/p>\n
According to Bahlil, the development of E50 also takes into account\nthe implementation of ethanol-based fuels in several other countries. He\nmentioned that Brazil has implemented E100, while several states in the\nUnited States also use ethanol blends up to E100.<\/p>\n
The government aims for E50 development to reduce dependence on\npetrol imports. However, Bahlil emphasised that this target must be\nsupported by domestic ethanol production to ensure that the\nimplementation of ethanol blends does not create a new dependency on\nimported raw materials.<\/p>\n
\u201cIf we can achieve E50, God willing, our target is that we will no\nlonger need to import finished petrol products,\u201d Bahlil said.<\/p>\n
Consequently, the Ministry of Energy and Mineral Resources, together\nwith the Directorate General of Oil and Gas, will draft a roadmap for\nthe gradual implementation of ethanol blends. Bahlil provided a\nprojection of implementing E10 in 2027 and developing E20 in 2028 before\nmoving towards higher blend levels.<\/p>\n
\u201cWhen will this be implemented? There is a roadmap. It was just\ndecided in the DEN session. Our task now, along with the Directorate\nGeneral of Oil and Gas, is to design the roadmap,\u201d he said.<\/p>\n
Bahlil emphasised that the implementation of E10, E20, and eventually\nE50 will be adjusted to the readiness of the industry and domestic\nethanol production capacity.<\/p>\n
\u201cWe do not want to implement E10, E20, or E50 if the ethanol is\nimported from abroad; that would be the same thing. We want to utilise\nour domestic production,\u201d he added.<\/p>\n
On the upstream side, the Minister of Agriculture, Andi Amran\nSulaiman, stated that the government is beginning to consolidate land\nprovision to support the development of ethanol using cassava,\nsugarcane, and maize as raw materials. This step follows a limited\nmeeting regarding ethanol development held under the direction of\nPresident Prabermowo Subianto.<\/p>\n
Amran noted that 44 regents (Bupati) have expressed support for the\nprogramme. The government will begin preparing the development of\nethanol raw material commodities, including a pilot programme for maize\nwith an initial area of 1,000 hectares per regency.<\/p>\n
\u201cFor maize, we are providing assistance to regents for trial plots.\nWe will observe the results of the 1,000 hectares per regency. If the\nmaize is good and the yield is high, I will increase the maize area in\nJanuary,\u201d said Amran.<\/p>\n
According to Amran, ethanol development requires approximately 1 to 2\nmillion hectares for these three strategic commodities. The government\nis also preparing for the construction of ethanol factories in various\nregions.<\/p>\n
\u201cThis ethanol requires 1 to 2 million hectares across three strategic\ncommodities. God willing, we will build the factories and move massively\nacross Indonesia,\u201d he said.<\/p>\n
Amran stated that the government will prioritise the use of available\nland before considering the release of forest areas. One source of land\nbeing studied includes land that has already been released, covering\napproximately 1.3 million hectares.<\/p>\n
Furthermore, the government is preparing an investment scheme\ninvolving State-Owned Enterprises (SOEs) and the private sector. Amran\nmentioned that the SOE portion could reach 30 per cent, with the\nremainder coming from the private sector.<\/p>\n
Amran noted that the development of E50, alongside B50, has the\npotential to save approximately $30 billion in foreign exchange per year\nif the entire programme is realised. This saving, he said, would stem\nfrom the reduced need for energy imports.<\/p>\n
\u201cOur savings could reach $30 billion if E50 is fully realised,\ncombining E50 and B50. This means approximately 500 trillion Rupiah per\nyear in foreign exchange savings,\u201d Amran explained.<\/p>\n
Amran said the government is still in the early stages of land\nconsolidation and preparation, and the development of ethanol blends\nwill be carried out gradually. He estimated that the implementation of\nE20 could take place in 2029, continuing towards higher blend levels in\nsubsequent years.<\/p>\n
\u201cWe have E5, E10, and E20 in 2029. Our estimate is that if we move\nfrom now, we could reach E40 by 2030 or 2031,\u201d he said.<\/p>\n
Amran also mentioned that the ethanol industry development has the\npotential to create at least 8 million permanent jobs. The programme is\ndirected as part of the effort to achieve energy independence, involving\nfarmers, SOEs, the private sector, and local governments.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bahlil-government-begins-drafting-roadmap-for-e50-development-1789998863", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }