All Indonesian Fuel Business Entities Required to Blend 5% Ethanol from H2 2026
The Ministry of Energy and Mineral Resources (ESDM) has officially mandated a 5% bioethanol blend into petrol, known as E5, starting from the second half of 2026. The policy will be implemented gradually, with the initial implementation area covering the entire island of Java.
The Director General of New, Renewable Energy, and Energy Conservation (EBTKE) at the Ministry of ESDM, Eniya Listiani Dewi, confirmed that the utilisation of bioethanol-based biofuels has been included in the draft Ministerial Decree.
“So, for the second semester of 2026, all fuel business entities are required to carry out blending, in accordance with ministerial regulation number 4 of 2025,” Eniya stated during a hearing with Commission XII of the Indonesian House of Representatives (DPR RI).
According to Eniya, the E5 product will only apply to the non-Public Service Obligation (non-PSO) segment, or non-subsidised fuel. In the initial stage, the E5 fuel blending programme will utilise the distribution infrastructure owned by PT Pertamina (Persero).
“And in the mandate that will be issued in the ministerial decree this month, it will also add bioethanol delivery outlets, which currently serve as a trial market for Pertamax Green 95 and will certainly increase in 2026,” Eniya said.
Previously, Eniya revealed that the government has identified three local companies capable of supplying 26,000 kilolitres of ethanol. This supply volume will be stipulated through a Ministerial Decree (Kepmen) as the legal basis for determining the volume of E5 petrol circulating in the market.
“Local raw material suppliers that have stated their capability to deliver fuel-grade ethanol to us total 26,000 from three companies. This data has just been collected; I will recap it as the process is ongoing until the end of May, followed by the Kepmen process in June, and we will finalise the volume,” she added.
The initial distribution areas are focused on Java, including Jakarta, West Java, Central Java, East Java, and Yogyakarta. Eniya stated that PT Pertamina (Persero) has prepared 179 locations and plans to add new distribution points as the policy progresses.
“According to the specified locations: Java, East Java, West Java, Central Java, and Yogyakarta. It is not national because a national scope lacks clarity; the Minister’s directive is to use local raw materials,” she explained.
Following Java, the government projects expanding distribution to Bali and Lampung in the coming years. The programme is part of the energy transition roadmap to achieve a higher biofuel-petrol blend target of E20 by 2028.