Government targets 2027 for initial ethanol-blended fuel rollout, says Bahlil

Jakarta (ANTARA) - Minister of Energy and Mineral Resources Bahlil Lahadalia has announced that the government is targeting the implementation of a 10 per cent ethanol blend in petrol (E10) starting in 2027, as an initial phase before transitioning to E20. The policy is designed to reduce Indonesia’s dependence on imported fuel. “The proposal for this ethanol mandate has been underway since 2025 and our study is nearly complete. The E20 plan will be fully established by 2028-2029,” Bahlil said at the Presidential Palace complex in Jakarta on Monday. He explained that the government does not want the E20 policy to result in increased ethanol imports. Therefore, priority is being given to preparing the domestic industry and securing raw material supplies before the mandate is fully enforced. “We don’t want to implement E20 and then have to import the ethanol. So now we are preparing the industry first,” he stated. The raw materials for ethanol will be sourced from commodities such as cassava, sugarcane, and maize. Bahlil noted that the government will adopt a strategy similar to the one used for the biodiesel programme, which was rolled out in stages from B10 to the current B50. He added that the government is also preparing sugarcane plantations integrated with downstream industries to support the ethanol supply. Bahlil cited the industrial model in Brazil, where factories can switch production between sugar and ethanol based on market prices. “When the price of ethanol rises, they switch to ethanol. When the price of sugar goes up, they switch to sugar. We will implement these two models and are currently finalising preparations with several industries and companies that will develop this,” he explained.