Bahlil Mandates 10 Percent Ethanol-Blended Petrol by 2027

Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia has stated the government will mandate bioethanol, or petrol mixed with ethanol, in 2027, drawing on the success of the B50 biodiesel mandatory programme. “The President’s (Prabowo Subianto) directive is that we must implement ethanol. Therefore, we will carry out the mandate in 2027,” Bahlil said during the launch of the B50 Biodiesel Mandatory Programme at KM 57 Rest Area, Karawang Regency, West Java, on Thursday. Bahlil explained that the mandatory bioethanol implementation would be divided into several stages, with the first phase requiring a blend of 10–20 percent ethanol. He expressed hope that the ethanol blend could continue to increase, similar to the current B50 biodiesel mandate. “So sugarcane, cassava, and corn will be managed together, both by Danantara, Pertamina, and the private sector,” Bahlil said. The Ministry of Energy and Mineral Resources previously announced that Indonesia would mandate the use of petrol with a five percent ethanol blend, or E5, starting in July 2026 in several locations. Director General of New, Renewable Energy and Energy Conservation Eniya Listiani Dewi stated that the E5 mandate in July 2026 would only apply in certain areas due to limited ethanol feedstock supply. The locations for the E5 mandate include Jakarta, East Java, West Java, Central Java, Yogyakarta, Bali, and Lampung. In support of bioethanol adoption, the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) is accelerating the development of an integrated bioethanol plant in Lampung Province as part of efforts to promote downstreaming in the plantation sector while strengthening national energy security. Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu said the integrated bioethanol concept project is expected to become a model for developing agriculture-based and domestic resource-based renewable energy. This commitment was reinforced during a coordination meeting and field visit for integrated bioethanol development in Lampung Province with the Lampung Provincial Government, PT Pertamina New and Renewable Energy (PNRE), PT Toyota Motor Manufacturing Indonesia (TMMIN), and relevant stakeholders on Tuesday (9/6). Lampung possesses strong feedstock potential, from sugarcane molasses and sorghum to biomass waste, which can be utilised for the development of first-generation and second-generation bioethanol.