E5 Petrol Mandate Set to Roll Out in July 2026, National Energy Council Reveals Readiness

The National Energy Council (DEN) has detailed its preparations for implementing the mandatory blend of 5% bioethanol in petrol (E5), targeted for a phased rollout beginning July 2026 alongside the B50 biodiesel mandate. DEN member Satya Widya Yudha stated that the government is currently identifying the readiness of domestic ethanol plants and seeking solutions to regulatory and economic hurdles to make national ethanol production feasible for fuel blending. ‘DEN has visited several ethanol factories to identify what is preventing them from being feasible as a petrol blend substitute,’ he said during an energy dialogue at IPB University in Bogor on Wednesday (10/6/2026). Monitoring is ongoing at bioethanol facilities in East Java, and presentations from committed industry players like ENERO in Mojokerto and Molindo have been received, with their intention to contribute to the fuel mix described as very high. Involvement of local producers is considered crucial for the mandate’s success, with hopes that supply barriers will be resolved to meet next month’s launch target. According to data from the Directorate General of New, Renewable Energy, and Energy Conservation (EBTKE), new plants will produce fuel-grade ethanol exceeding 99% purity. These include PT Indonesia Ethanol Industry in Lampung (20,000 KL capacity), PT Madu Baru in Yogyakarta (7,500 KL), PT Indo Acidatama in Solo (3,000 KL), and East Java’s PT Energi Agro Nusantara and PT Molindo Raya Industrial with 30,000 KL and 10,000 KL capacities. The 2026 E5 programme will cover East Java, DKI Jakarta, West Java, Banten, Central Java, and the Special Region of Yogyakarta. Bali will be added in 2027, with the bioethanol blend rising to 10% (E10) from 2028 across the same areas, and Lampung joining the E10 zone from 2029 to 2030.