Indonesian Political, Business & Finance News

Bahlil Mandates 5%-10% Bioethanol Blending, Here Are the Implementation Locations

| Source: CNBC Translated from Indonesian | Energy
Bahlil Mandates 5%-10% Bioethanol Blending, Here Are the Implementation Locations
Image: CNBC

The Ministry of Energy and Mineral Resources (ESDM) has officially established a policy on blending petroleum fuels (BBM) with vegetable-based fuels (BBN). This is aimed at strengthening national energy resilience and promoting the energy transition.

The regulation is contained in Ministerial Decree No. 113.K/EK.05/MEM.E/2026 on the Phasing of Utilisation of Vegetable-Based Fuels, issued on 3 March 2026.

Under this new policy, the government has set targets for the gradual implementation of BBN blending up to 2030. For biodiesel (diesel), it is 40% in 2026 and 50% from 2027 to 2030. Implementation will be nationwide.

For bioethanol, it is 5% in 2026-2027, then 10% from 2028 to 2030. Initial implementation will occur in regions such as East Java, DKI Jakarta, West Java, Banten, Yogyakarta, Bali, and Lampung.

For diesel biohydrocarbon, it is 5% in 2027 and 10% from 2028 to 2030. Implementation will be nationwide.

For bioavtur (aviation turbine fuel), it starts at 1% gradually from 2026 to 2028, then rises to 5% in 2029-2030. Initial implementation will be at Soekarno-Hatta Airport and I Gusti Ngurah Rai Airport.

In the first dictum of the regulation, it states that petroleum fuel business entities are required to blend BBN into BBM for commercial purposes.

“Petroleum fuel business entities must blend vegetable-based fuels with petroleum fuels for commercial purposes,” the decree states, quoted on Friday (10/4/2026).

The blending of vegetable-based fuels with petroleum fuels as referred to in the first dictum is carried out with the following provisions:

  1. biodiesel with specific petroleum fuel in the form of diesel oil

  2. biodiesel with general petroleum fuel in the form of diesel oil

  3. bioethanol with general petroleum fuel in the form of petrol

  4. diesel biohydrocarbon with general petroleum fuel in the form of diesel oil with a cetane number specification of 51 at fuel filling stations for land transportation

  5. bioavtur with general petroleum fuel in the form of avtur.

View JSON | Print