Bioethanol Price Officially Raised to Rp10,933/Litre, Effective July 2026

The Ministry of Energy and Mineral Resources has officially set the Market Index Price for bioethanol at Rp10,933 per litre for July 2026, a notable rise from the Rp8,062 per litre recorded in June. The price calculation is based on a formula using the average price of molasses over three months multiplied by 4.125 kg per litre, plus US$0.25 per litre. The average molasses price used for the period 15 December 2025 to 14 June 2026 was recorded at Rp1,568 per kg, with a Bank Indonesia middle exchange rate average of Rp17,853 per US dollar for the period 15 May to 14 June 2026.

Indonesia currently markets a petrol product blended with 5% bioethanol, sold by PT Pertamina Patra Niaga under the brand Pertamax Green 95, though this is not yet a national mandate. The government is targeting a mandatory nationwide bioethanol blend in petrol, eventually reaching 20%. Minister of Energy and Mineral Resources Bahlil Lahadalia aims to begin the mandatory E20 programme by 2028 as a measure to reduce dependence on imported energy and strengthen national energy security.

Bahlil stated that the E20 plan was inspired by the success of the biodiesel programme and by studying other countries’ experiences, including a comparative study to Brazil. He noted that Brazil has already mandated an E30 blend, with some regions even using pure ethanol. Bioethanol can be produced from abundant local commodities such as corn, sugarcane, and cassava, which is expected to create jobs and boost regional incomes. While initial needs may require imports, the government intends to boost domestic production, estimating that the E20 mandate will require around 8 million kilolitres of bioethanol, significantly reducing current petrol imports of approximately 20 million kilolitres per year.