Bahlil pushes for Bioethanol E20 policy to slash petrol imports

Energy and Mineral Resources Minister Bahlil Lahadalia has stated the government is working towards implementing a Bioethanol E20 policy to reduce petrol imports. “We must convert to reduce imports. If B50 can meet our needs, why not petrol,” Bahlil said in Jakarta on Thursday during a speech at the Indef 2026 Mid-Year National Seminar. According to him, current petrol demand reaches 40 million kilolitres, while domestic production stands at 20 million kilolitres, leaving a 20 million kilolitre shortfall that must be imported. Bahlil said that although domestic lifting cannot fully meet demand, petrol imports must be minimised to avoid adding to the state’s burden. Therefore, he continued, the Bioethanol E20 policy must be implemented by 2028-2029, as B50 is already applicable and will reduce imports. “From 20 million kilolitres of petrol, once we implement E20, that leaves 16 million. We just need to push how to increase lifting to produce petrol,” he stated. He added that several countries are already using bioethanol to reduce oil dependency. “America, Brazil, and several other countries have already implemented it. What is the goal? So we can reduce imports so our foreign exchange does not flow out,” he added. Previously, Bahlil stated the government is currently working to increase domestic crude oil production or lifting to reduce imports. “There are three approaches we will take to increase oil lifting,” Bahlil said. The ministry is seeking to boost oil lifting through several means, such as the use of technology and reviving stalled Plans of Development. Furthermore, Bahlil added, in order to increase production, exploration will also be resumed so that crude oil reserves can grow. “We have no choice but to conduct exploration. We have around 120 potential wells that are currently undergoing exploration tenders,” he added.