Agriculture Minister Seeks 20 Percent Ethanol Blend for Fuel
Agriculture Minister Andi Amran Sulaiman stated that the government is targeting the use of 20 percent ethanol or bioethanol content in fuel (BBM). “Brazil already has 27, if I’m not mistaken, or 37; now we’re heading towards that,” said Amran Sulaiman at the Office of the Coordinating Ministry for Food, Jakarta, on Monday, 30 March 2026.
To achieve this target, the Agriculture Minister said the government needs 8 million tons of raw materials for ethanol production. He stated that ethanol can be produced from domestic raw materials, such as sugarcane juice, corn, and cassava.
In addition to demonstrating energy independence, Amran Sulaiman said that the successful implementation of the ethanol and BBM blend indicates food self-sufficiency. “If this happens, Indonesia 2045 or 2044 will be the golden Indonesia,” he remarked.
Previously, the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia will mandate the application of BBM blended with ethanol no later than 2028.
He said the government is currently designing a roadmap for bioethanol implementation. “I assure you that by no later than 2028 there will be a mandatory (bioethanol requirement). Perhaps 2027-2028,” said Bahlil, quoted from Antara, Friday, 9 January 2026.
Separately, the Director General of New, Renewable Energy and Energy Conservation at the Ministry of ESDM, Eniya Listiani Dewi, stated that they have discussed ethanol excise issues with the Coordinating Ministry for Economic Affairs.
The Ministry of Finance, she said, has exempted import duties for ethanol used in plant-based fuels. However, this exemption only applies to business actors who have a trading business licence.
Eniya referred to Pertamina, which already has a trading business licence (IUN), allowing Pertamina to be exempt from ethanol import duties. “We are discussing whether the revision of Perpres 40 (2023 on Accelerating National Sugar Self-Sufficiency and Bioethanol) will include excise tax relaxation,” said Eniya.
Bahlil also previously conveyed that President Prabowo Subianto has approved a mandatory 10 percent ethanol blend in BBM to reduce carbon emissions and dependence on BBM imports.
Bahlil said he will provide incentives for companies building ethanol factories in Indonesia to support the mandatory 10 percent bioethanol (E10) plan. Deputy Minister of Investment and Downstreaming Todotua Pasaribu stated that the Japanese automotive company Toyota is seizing investment opportunities by meeting Indonesia’s bioethanol needs.