The Ministry of Energy and Mineral Resources (ESDM) has revealed that\nthe obstacles regarding excise levies for bioethanol as a blending\ncomponent for Fuel (BBM), specifically petrol, have been resolved. The\nremoval of bioethanol excise is considered a vital stimulus to\naccelerate the implementation of plant-based energy blending within the\nnational transport sector.<\/p>\n
The Director General of New, Renewable Energy, and Energy\nConservation (EBTKE) at the Ministry of ESDM, Eniya Listiani Dewi,\nexplained that the excise constraint was successfully overcome through\ncoordination with the Ministry of Finance. The abolition of this levy is\nexpected to make it easier for PT Pertamina (Persero) to implement the\ngreen petrol mandatory programme more effectively in the field.<\/p>\n
\u201cAt this time, we can convey that for the implementation of\nbioethanol, there is no longer any excise. Therefore, the excise issue\nhas been resolved with a Minister of Finance Regulation and currently,\nthe excise has been abolished, which will facilitate our colleagues at\nPertamina in implementation,\u201d Eniya stated during a Hearing Meeting\n(RDP) with Commission XII of the Indonesian House of Representatives\n(DPR RI), Jakarta, Tuesday (8\/9\/2026).<\/p>\n
The government has also drafted a roadmap for bioethanol utilisation,\nrequiring all petrol blending business entities to perform blending. In\n2026, a 5% blending mandate (E5) will be implemented across Java, with a\ntarget to increase to 20% (E20) by 2028.<\/p>\n
\u201cIn accordance with the direction of the Minister of ESDM, E20 is\ntargeted for 2028. The goal of accelerating the bioethanol mandate is\ncertainly to reduce petrol imports and support energy transformation in\nthe transport sector,\u201d she explained.<\/p>\n
The requirement for pure bioethanol is projected to surge alongside\nthe increase in blending levels. For 2026, with a projected demand for\nnon-PSO petrol of 6.65 million kilolitres (kl), the government requires\na bioethanol supply of 333,000 kl, which is expected to rise to 1.39\nmillion kl by 2028.<\/p>\n
\u201cIn 2026, the mandate will be 5%; in 2027, a minimum of 5% so that if\nit rises to 10% it will be better; in 2028, a minimum of 10% so that if\nthe target is 20% it will be far more optimal,\u201d she added.<\/p>\n
Currently, bioethanol production capacity has only reached 70,500 kl\nper year from five existing factories. To bridge the supply gap, the\nministry is encouraging the acceleration of investment for the\nconstruction of 20 new factories by 2027 so that domestic raw material\nneeds can be met independently without imports.<\/p>\n
\u201cI want to encourage ethanol investment as quickly as possible; our\ncalculation is that by 2027, there must be 20 factories. For the\nfeedstock for next year, for E10 alone, we need approximately 1.2\nmillion, if I am not mistaken. However, we can currently only account\nfor 70,500 kilolitres per year,\u201d she concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/with-excise-issues-resolved-path-for-ethanol-blended-petrol-policy-becomes-easier-1788875791", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }