Bioethanol Feedstock for E20 Programme to Vary by Region, Here's Why

PT Pertamina New & Renewable Energy (NRE) has stated that the source of raw materials for the 20% bioethanol (E20) programme will differ across regions in Indonesia. The company is adopting a multi-region strategy to leverage local agricultural strengths, such as corn, sugarcane, and sorghum, to ensure supply chain efficiency and support national energy self-sufficiency. “The potential in each region is different, so we are going where the resources are,” a company official explained, noting that sugarcane is abundant in East Java while cassava and sorghum are prominent in Lampung. Pertamina NRE plans to establish at least five new processing facilities in areas including Central Java, East Java, and Sulawesi. The company is also exploring second-generation feedstocks like agricultural waste to avoid competition with food supplies. Meanwhile, the Ministry of Energy and Mineral Resources is preparing a road test for E20 fuel. The Director General of New, Renewable Energy, and Energy Conservation revealed that the ministry is coordinating with the Indonesian Automotive Industry Association to test the fuel, targeting a phased rollout with E5 mandated before December, followed by E10 in early 2027, and E20 in 2028. The official expressed confidence that modern vehicle engines can handle up to 30% ethanol blends, but stressed that measured trials are necessary to ensure a smooth energy transition in the transportation sector.