Government Maps Regions Producing Bioethanol Feedstocks

Jakarta, CNBC Indonesia – Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia said Java, Sumatra and Papua have potential local feedstocks to support national bioethanol supplies. The mapping exercise is intended to underpin plans for a phased policy requiring a 50 per cent ethanol blend in petrol, known as E50.

The government is refining the bioethanol programme by assessing domestic processing capacity. This is intended to ensure that a mandatory ethanol blend does not lead to dependence on imports.

“The feedstock mapping has been done. There are some areas in Java, Sumatra and Papua,” Bahlil said on the sidelines of a national working meeting of the Indonesian Indigenous Entrepreneurs Association (HIPPI) in Jakarta, as quoted on Tuesday (13 October 2026).

The government says domestic supply readiness is a prerequisite for the biofuel-blending policy, so that it does not create a new reliance on imported commodities. The approach draws on the experience of implementing bioenergy blends in diesel fuel.

“Our plan is to go up to E50, but gradually. By 2028, we will assess the current capacity of our industries. We must not make the blend mandatory and then have to import the ethanol. That is not acceptable,” he added.

Local agricultural commodities that could be used as bioethanol feedstocks include sugar cane, cassava and maize. Processing these crops is also intended to absorb local farmers’ produce and create new centres of economic growth in various regions.

The government is optimistic that the ethanol mandate can help reduce Indonesia’s reliance on petrol imports. National petrol consumption is currently 40 million kilolitres a year, while domestic production is no more than 18–19 million kilolitres. Bioethanol is also seen as a more affordable alternative energy source amid high global crude oil prices.

“For petrol, we consume 40 million kilolitres. Domestic production is no more than 18 to 19 million, and we still import the rest. How do we address that? We want to promote ethanol, and take it up to E50,” Bahlil said in his presentation.