Chasing E20 Mandate, Energy Ministry Opens Door for Private Sector to Build Ethanol Plants

The Ministry of Energy and Mineral Resources (ESDM) is opening opportunities for private companies wishing to build ethanol plants, following the target of a mandatory 20 percent bioethanol blend in petrol (E20) by 2028. “So the private sector is allowed and we strongly encourage them to be able to produce these (bioethanol) plants,” said Eniya Listiani Dewi, Director General of New, Renewable Energy and Energy Conservation at the ESDM Ministry, in Jakarta on Monday. Eniya added that this is also being driven by the government through discussions on revising Presidential Regulation Number 40 of 2023 concerning the Acceleration of National Sugar Self-Sufficiency and the Provision of Bioethanol as Biofuel. She said the revision of the regulation will later re-regulate the blending capacity. “Regarding capacity, the blending issue in the revision of Presidential Regulation 40 will also be added. So yesterday, today I also ordered that we communicate with the Coordinating Ministry for Economic Affairs because the initiative for the presidential regulation revision is there. So we adjust it to President Prabowo Subianto’s direction to increase it,” said Eniya. She assessed that the physical construction of an ethanol plant likely will not take long, within a period of 1.5 years. However, Eniya acknowledged that rapid construction must also be complemented by the readiness and availability of local raw materials. “Now, it’s just the raw materials. If you build a factory, it can be done in 1.5 years, but the raw materials must also be prepared carefully,” she said. Previously, President Prabowo Subianto planned to increase the number of ethanol plants in Indonesia, building at least 30 to 50 factories as an effort to develop fuel oil mixed with ethanol. President Prabowo stated on Friday (17/7) that Indonesia is now capable of blending petrol with ethanol up to 20 percent, or E20. “The officers said we can reach E20. We need factories, currently we only have one factory. I have decided we will build at least 30 factories, if necessary up to 50 factories,” he said. The Head of State cited examples of how India has already achieved E20 and Brazil has reached E100. Looking at these two countries, he expressed optimism that Indonesia can achieve the E20 target.