Bahlil Targets Implementation of 20% Bioethanol Starting in 2028

JAKARTA - The government is refining plans for the implementation of a 20% bioethanol blend fuel, or E20, targeted to take effect in 2028. This policy is being prepared as part of efforts to reduce dependence on fossil-based fuels while strengthening the foundation of national energy resilience. Energy and Mineral Resources Minister Bahlil Lahadalia stated that the step is not without basis, but draws from the success of the biodiesel programme in the diesel sector, which is seen as capable of curbing imports while stimulating domestic industry. Indonesia itself is considered to have strong potential for developing bioethanol. The raw materials are relatively abundant, ranging from sugarcane, corn, to cassava, which are spread across various regions. If managed optimally, the programme will not only impact energy but also open economic opportunities in the agricultural sector. Nevertheless, the government is not ruling out imports to meet initial needs. This option is positioned as a temporary solution while enhancing domestic production capacity. Based on initial calculations, the bioethanol requirement to support E20 is estimated to reach 8 million kilolitres in 2028. This figure is quite significant compared to current fuel imports, which are still around 20 million kilolitres. Bahlil emphasised that the plan has undergone various stages of technical studies. Moreover, several countries such as India, Thailand, and the United States have already adopted similar policies beforehand. Thus, the implementation of E20 is hoped to become one of the government’s concrete strategies in promoting energy self-sufficiency while creating a more sustainable energy ecosystem in Indonesia.