Coordinating Minister Zulhas states Indonesia heading towards E20 within five years
Coordinating Minister for Food Zulkifli Hasan has stated that Indonesia will increase the utilisation of biofuels, including a petrol blend containing 20 per cent bioethanol (E20), over the next five years as part of the energy transition.
Speaking at the Indonesia International Sustainability Forum in Jakarta on Tuesday, Zulkifli expressed optimism that Indonesia can produce E20 following the successful implementation of 50 per cent biodiesel, known as B50. He noted that the development of renewable energy is essential to reduce reliance on fossil fuels while simultaneously creating new employment opportunities.
“Renewable energy investment reduces dependence on the fossil industry and creates new jobs,” he said.
Zulkifli added that this agenda is part of the government’s efforts to build greener economic growth. He emphasised that the development of renewable energy and biofuels must be an integral part of an economic transformation that maintains food security and environmental protection.
In his speech, Zulkifli also mentioned that the government is currently establishing a credible and transparent carbon market to serve as a gateway for international financing to support the green growth agenda. The government has established the implementation of carbon economic value (NEK) through Presidential Regulation Number 110 of 2025. This policy includes several instruments, such as carbon trading, carbon tax, and result-based payments.
During a limited meeting at the Presidential Palace in Jakarta on Wednesday (16/9), President Prabowo Subianto instructed the Minister of Agriculture, Andi Amran Sulaiman, to prepare 2 million hectares of existing sugarcane land to be processed into bioethanol for the E20 Programme. Sugarcane was selected as the primary feedstock for bioethanol because its available land area is considered the most feasible compared to corn and cassava plantations. President Prabowo also directed the Danantara Investment Management Agency to prepare the necessary industry infrastructure for the E20 Programme.