Government Targets E20 Fuel Blend Implementation by 2029

The Coordinating Ministry for Economic Affairs has announced that the implementation of a 20 per cent ethanol blend (E20) in fuel is targeted for 2029 as part of efforts to strengthen national energy security.

“Thus, in 2029, the 20 per cent ethanol blend can be implemented,” said Elen Setiadi, Deputy for Energy and Mineral Resources Coordination at the Coordinating Ministry for Economic Affairs, during a MINDialogue event in Jakarta on Wednesday.

He noted that the current ethanol blend in fuel is still at five per cent. To support the target, the government will expand the sources of raw materials for ethanol derived from domestic commodities, such as sugarcane and cassava. One potential source is molasses developed through the food estate programme in several regions, including Papua.

Furthermore, Elen assessed that the development of the energy ecosystem is key to accelerating national industrialisation. He stated that energy security is closely linked to the sustainability of the industrial sector. “The President’s Astacita directive is clear that energy security is an important part. Then the second part is downstreaming,” he said.

According to him, global dynamics, including conflicts in the Middle East, serve as an important lesson for the country to strengthen the management of natural resources and energy. Elen cited the Biodiesel 50 (B50) programme as an example of strengthening national energy security, noting that through this programme, Indonesia has been able to reduce its dependence on diesel imports.

He added that the government is also continuing to ensure the availability of subsidised fuel, both diesel and Pertalite, so that prices at the consumer level remain under control. “The President has guaranteed that until the end of the year, the prices for subsidised fuel, diesel and Pertalite, will be maintained at current prices,” he stated.