Government Prepares Mandatory E10 for 2027, Followed by Gradual E20 Rollout

The government is targeting the implementation of a 10% ethanol blend in fuel (E10) starting in 2027 as the initial phase towards the gradual adoption of E20 petrol by 2028-2029. This policy is part of the government’s efforts to reduce dependence on imported fuel, particularly petrol.

Minister of Energy and Mineral Resources Bahlil Lahadalia stated that the government has been reviewing the mandatory ethanol policy since 2025. The study is now nearly complete and will form the basis for drafting the E20 implementation roadmap.

“The proposal for this ethanol mandate has been underway since 2025 and our study is almost finished. The E20 plan, which we will finalise, extends to 2028-2029,” Bahlil said at the Presidential Palace complex in Jakarta on Monday (20/7/2026).

According to Bahlil, the government does not want the implementation of the ethanol mandate to result in increased ethanol imports. Therefore, the government is prioritising the development of the industry and ensuring the availability of domestic raw materials before the policy is fully enforced.

“We do not want to implement E20 but then have to import the ethanol. So now we are preparing the industry first,” Bahlil said.

He explained that the raw materials for ethanol will come from commodities such as cassava, sugarcane, maize, and various other crops. Over the next one to two years, the government will focus on preparing supporting industries to ensure sufficient domestic ethanol supply.

Bahlil said the policy will be implemented in stages, beginning with E10 before transitioning to E20. “In the next one to two years, we will make preparations, after which we will fully mandate E20,” he stated.