Bahlil Mandates 1% Bioavtur Starting from 2027

Jakarta, CNBC Indonesia - The Ministry of Energy and Mineral Resources (ESDM) has officially established a policy mandating the blending of petroleum fuels (BBM) with vegetable-based fuels (BBN) as part of efforts to strengthen national energy resilience and drive the energy transition. The policy is contained in Ministerial Decree No. 113.K/EK.05/MEM.E/2026 on the Phasing of Vegetable-Based Fuel Utilisation, issued on 3 March 2026. The regulation stipulates that petroleum business entities must blend BBN into commercial fuels. This requirement covers several types of blending, namely biodiesel for diesel, bioethanol for petrol, diesel biohydrocarbon for diesel with specific specifications, and bioavtur for aviation fuel. The government has set phased implementation targets for BBN blending up to 2030, detailed as follows: 1. Bioavtur (avtur) will be implemented gradually at 1% in the initial period, increasing to 5% in 2029-2030. The initial implementation stage will be at Soekarno-Hatta Airport and I Gusti Ngurah Rai Airport. 2. Biodiesel (diesel) is targeted at 40% from 2026, increasing to 50% in 2027-2030 with nationwide implementation. 3. Bioethanol (petrol) at 5% in 2026-2027, then increasing to 10% in 2028-2030. Initial implementation is focused on regions such as East Java, DKI Jakarta, West Java, Banten, DIY, Bali, and Lampung. 4. Diesel biohydrocarbon starting at 5% in 2027 and increasing to 10% in 2028-2030, with nationwide coverage.