Bahlil Prepares Phased Ethanol Mandate, E20 Targeted for 2028

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has revealed that the government is preparing the phased implementation of a mandatory ethanol blend in petrol. The programme will begin with the implementation of E10 before increasing to E20, which is targeted to take effect from 2028 to 2029. Bahlil conveyed this after attending a Plenary Cabinet Session and meeting with President Prabowo Subianto at the State Palace, Jakarta, on Monday (20/7/2026). Bahlil said the discussion regarding the ethanol mandate policy was also addressed in the meeting with the President. According to him, the study on the programme has been underway since 2025 and is now nearly complete. He explained that the government is currently planning the implementation of a 20% ethanol blend (E20) in petrol within the 2028 to 2029 timeframe. According to Bahlil, the implementation of the ethanol mandate aims to reduce Indonesia’s dependence on imported fuel, particularly petrol. However, the government does not want the policy to increase dependence on ethanol imports. Therefore, the government is first building domestic industrial capacity. He mentioned that the main raw materials for the ethanol industry will come from domestic agricultural commodities such as cassava, sugarcane, maize, and several other crops. When asked whether the E20 implementation target could begin in 2027, Bahlil stated the government would strive to accelerate the implementation if all preparations are adequate. Regarding the readiness of sugarcane supply as one of the main raw materials for ethanol, Bahlil said the government is preparing the development of sugarcane plantations integrated with the downstream industry. He cited the industrial model in Brazil, which is capable of switching production between sugar and ethanol according to market price developments. Bahlil said the government is currently finalising the industrial development plan with several companies. He confirmed that the implementation will be carried out in phases, likely starting with E10.