Bahlil Officially Issues Bioethanol-Biodiesel Regulation, Here is the Timeline

JAKARTA - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has officially established a policy for blending Petroleum Fuels (BBM) with Biofuels (BBN) as part of efforts to strengthen national energy resilience.

This policy is enshrined in Ministerial Decree No. 113.K/EK.05/MEM.E/2026 on the Phased Utilisation of Biofuels, which takes effect from 3 March 2026.

Through this regulation, the government mandates all BBM business entities to blend BBN into their commercially marketed BBM products.

The types of blending regulated include biodiesel for diesel, bioethanol for petrol, diesel biohydrocarbon for diesel with specific specifications, and bioavtur for aviation fuel.

In the same regulation, the government has set a roadmap for gradual BBN blending up to 2030, focusing on four types of fuel. Here are the details:

For certain or subsidised diesel BBM, the biodiesel blending target is 40 per cent (B40) in 2026, then rising to 50 per cent (B50) in 2027, 2028, 2029, and 2030. The implementation of biodiesel blending is carried out nationwide.

For general or non-subsidised petrol BBM, the bioethanol blending target in 2026 is 5 per cent (E5) in six regions across the country, namely East Java, Special Capital Region of Jakarta, West Java, Banten, Central Java, and Special Region of Yogyakarta.

Meanwhile, in 2027, the bioethanol blending target is also 5 per cent (E5) but with one additional implementation area, namely Bali.

In 2028, the bioethanol blending target rises to 10 per cent (E10) with the implementation areas remaining the seven regions in Indonesia as targeted in 2027.

Continuing into 2029 and 2030, the bioethanol blending target remains at 10 per cent (E10), but with one additional implementation area, namely Lampung. The total E10 implementation areas in 2029 and 2030 reach eight regions.

For bioavtur blending, the target starts gradually at 1 per cent in 2027-2028, then rises again to 5 per cent in 2029-2030. The initial implementation phase is at Soekarno-Hatta Airport and I Gusti Ngurah Rai Airport in Bali.