Government to Implement E5 Bioethanol Mandate Alongside B50 Biodiesel

The Ministry of Energy and Mineral Resources (ESDM) is advancing plans to boost renewable energy use in the fuel sector, targeting the implementation of a 50% biodiesel blend (B50) in diesel and a 5% bioethanol blend (E5) in petrol. Director General of New, Renewable Energy and Energy Conservation Eniya Listiani Dewi stated that the E5 mandate is targeted for enforcement before December to pave the way for a higher blend of 10% (E10) by January 2027, and 20% (E20) by January 2028.

The acceleration of the E5 programme is supported by regulatory preparations, including the exemption of excise duty on ethanol for fuel through a Minister of Finance Regulation. The government has also simplified the licensing process for biofuel blending to enable business entities to distribute environmentally friendly petrol more swiftly.

Regarding raw material supply, the ministry stressed that the bioethanol must be sourced from domestic production. The government is currently identifying national production capacity to ensure sufficient volume allocation, which will be stipulated in a Ministerial Decree. Additionally, the government plans to conduct road tests for higher ethanol blends, including E20, in collaboration with the Association of Indonesian Automotive Industries (Gaikindo) to assess vehicle engine readiness.