Indonesian Political, Business & Finance News

Attention! All Indonesian Petrol Stations Required to Mix 5% Bioethanol (E5) by Second Half of 2026

| Source: CNBC Translated from Indonesian | Energy
Attention! All Indonesian Petrol Stations Required to Mix 5% Bioethanol (E5) by Second Half of 2026
Image: CNBC

The Ministry of Energy and Mineral Resources (ESDM) has officially implemented a mandatory 5% bioethanol blending into petrol, known as E5, starting from the second half of 2026. This policy will be introduced gradually, with the initial implementation area covering the entire island of Java.

The Director General of New, Renewable, and Energy Conservation (EBTKE) at the Ministry of ESDM, Eniya Listiani Dewi, emphasised that the use of bioethanol-based biofuels has been included in the draft of the ESDM Ministerial Decree. “Therefore, for the second semester of 20lag 2026, all fuel enterprises are required to perform blending, in accordance with Ministerial Regulation number 4 of 2025,” Eniya stated during a working meeting with Commission XII of the Indonesian House of Representatives (DPR RI) on Thursday.

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 of the E5 blending programme, the existing distribution infrastructure owned by PT Pertamina (Persero) will be utilised. “In the mandate to be issued in the ministerial decree this month, this will also expand the delivery outlets for bioethanol, which are currently in a trial market phase under the Pertamax Green 95 brand, and will certainly increase in 2026,” said Eniya.

Previously, Eniya revealed that the government has identified three local companies capable of supplying 26,000 kilolitres of ethanol. This supply volume will be formalised through a Ministerial Decree to serve as the legal basis for determining the volume of E5 petrol circulating in the market. “Local raw material suppliers stating they can deliver fuel grade to us total 26,000 from three companies. This is currently being collected; I will recap this later as the process is ongoing until late May, and in June, we will process the Ministerial Decree to ensure the volume,” she added.

The initial distribution area will focus on Java, including Jakarta, West Java, Central Java, East Java, and Yogyakarta. Eniya noted that PT Pertamina (Persero) has prepared 179 locations and plans to add new distribution points as the policy progresses. “As per the locations mentioned, it covers Java, East Java, West Java, Central Java, and Jogja. It is not national yet, as the Minister’s direction is to prioritise using local raw materials,” she explained.

Following the implementation in Java, the government projects an expansion of distribution to Bali and Lampung in the coming years. This programme is part of the energy transition roadmap to achieve higher targets for biofuel blending, specifically E20, by 2028.

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