Bahlil Accelerates Mandatory Ethanol Blending in Fuel Amid Soaring Global Oil Prices

Jakarta – Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia, is set to accelerate the implementation of mandatory bioethanol blending policy for fuel in response to soaring global oil prices that have exceeded US$118 per barrel.

“If fossil oil prices can exceed 100 US dollars per barrel, then it will be cheaper if we blend,” Bahlil stated at the Ministry of Energy and Mineral Resources office in Jakarta on Monday, 9 March 2026.

Bahlil had previously planned to mandate 20 percent ethanol content in fuel, known as E20, by 2028, to reduce petrol imports. However, the policy could be implemented earlier given the dynamics of geopolitical situations in the Middle East affecting nations dependent on fossil fuels.

“We are making it mandatory for petrol and that is cleaner,” he added.

Beyond the mandatory E20 blending, Bahlil also plans to accelerate the implementation of 50 percent biodiesel or B50 policy. B50 is a blended fuel consisting of 50 percent diesel and 50 percent biofuel (BBN) based on palm oil. Currently, Indonesia enforces mandatory B40, whilst B50 remains under review.

“So there are several steps that we will take. Of course, given the current circumstances, the government is considering finding the best alternatives to maintain national energy supply,” he concluded.