Bahlil Targets Mandatory 20% Ethanol Blend Starting in 2028

The government is targeting the implementation of a mandatory 20% bioethanol blend (E20) in fuel oil (BBM) starting in 2028. This policy forms part of a long-term strategy to reduce dependence on fossil fuels while strengthening national energy resilience. Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that this step results from evaluations and lessons learned from the successful biodiesel programme applied to the diesel sector. “I went to Brazil and several other countries. I learned that in Brazil, E30 is already mandatory, and in some states, it’s even E100,” Bahlil said at the Sinergi Alumni IPB Untuk Bangsa event on Saturday (2/4/2026). He explained that bioethanol can be produced from various feedstocks such as corn, sugarcane, and cassava—commodities available in Indonesia. This is seen as having significant economic impacts, particularly in the agricultural sector and regions. According to Bahlil, to meet the bioethanol needs for the E20 programme, the government will also open options for imports. However, this step is only supplementary while encouraging increased domestic production. He projected that implementing mandatory E20 in 2028 will require around 8 million kilolitres of bioethanol. Meanwhile, current fuel import needs stand at about 20 million kilolitres. “If we implement E20 ethanol, the mandatory requirement in 2028 is 8 million. Currently, we import 20 million, so with a 20% mandatory, it’s minus 8 million more. So importers are left with 12 million. How could they not have a toothache? They’re complaining on social media again,” Bahlil said. On the other hand, Bahlil noted that this policy has undergone various testing stages and has been deemed feasible for implementation. He cited examples of countries like India, Thailand, and the United States that have already run ethanol blending programmes ahead of Indonesia. “This is roughly our way of bringing in and moving towards our energy resilience,” he said.