E50 and B50 Programmes Targeted to Save Rp 500 Trillion in Foreign Exchange Annually
The Minister of Agriculture, Andi Amram Sulaiman, has stated that the development of E50 and B50 biofuels has the potential to save up to US$30 billion, or approximately Rp 500 trillion, in foreign exchange annually. This saving is targeted through the development of energy based on domestic resources, thereby reducing the need for fuel imports.
Amran noted that the development of E50 is part of the government’s efforts to achieve energy independence, following previous government initiatives to boost food and protein production. The government is now beginning to consolidate ethanol development using sugarcane, cassava, and maize as raw materials.
“If E50 and B50 are fully implemented, it represents 30 billion dollars. This means approximately Rp 500 trillion per year. We will save our foreign exchange every year,” the Minister said during a press conference in Jakarta on Monday (21/09/2026).
According to Amran, the development of ethanol requires approximately 1–2 million hectares of land. The government also aims to undertake the massive construction of ethanol factories across various regions in Indonesia to process these raw materials into energy.
Sugarcane is one of the primary commodities prioritised by the government. Amran mentioned that the land requirement for sugarcane development reaches about one million hectares, while cassava and maize will also be developed as ethanol feedstock.
The government is involving 44 regents (Bupati) in the initial stages of the programme’s development. For maize, the government is providing support for trial plantings covering 1,000 hectares for each participating regent, the results of which will serve as a basis for expanding the area next January.
Land preparation for ethanol development is currently in the consolidation stage. The government will also ensure land legality to ensure the ethanol industry’s development can proceed.
“We are just beginning the consolidation today. This is the starting point,” said Amran.