House of Representatives Supports E5 Bioethanol Implementation to Boost Energy Security
Dewi Yustisiana, a member of Commission XII of the Indonesian House of Representatives from the Golkar Party faction, has welcomed the government’s plan, through the Ministry of Energy and Mineral Resources (ESDM), to implement a mandatory 5% bioethanol blend (E5) in petrol starting from the second semester of 2026. According to her, this policy is a strategic step towards strengthening national energy security while simultaneously reducing Indonesia’s dependence on fuel imports.
Dewi assessed that the development of bioethanol is a vital part of the effort to diversify national energy sources amidst global geopolitical challenges and fluctuations in world energy prices. “The E5 bioethanol mandate is a strategic move to expand the use of energy based on domestic resources. This policy will not only contribute to increasing national energy security but also serve as an important instrument to reduce dependence on fuel imports, which have long burdened the national energy balance,” Dewi stated in a written statement received on Tuesday.
She noted that Indonesia possesses significant potential to develop the bioethanol industry, supported by an abundant supply of raw materials ranging from sugarcane, molasses, and cassava to various other biomass sources. This potential needs to be optimised as part of the national downstreaming strategy to create greater added value for the domestic economy.
Dewi emphasised that bioethanol development would impact more than just the energy sector; it could also drive the growth of processing industries based on domestic resources, strengthen national supply chains, increase investment, and create new economic opportunities for raw material-producing regions. “If managed in an integrated manner from upstream to downstream, bioethanol development can become a key pillar by creating a wide multiplier effect, ranging from increased investment and the strengthening of processing industries to job creation and the improvement of welfare for farmers as raw material suppliers,” she explained.
However, Dewi reminded the government that the implementation of E5 should be carried out gradually and based on industrial readiness. The government must ensure the adequacy of raw material supplies, national bioethanol production capacity, the readiness of distribution infrastructure, and economic schemes that provide certainty for business actors to ensure the programme runs optimally and sustainably. As a working partner of the Ministry of Energy and Mineral Resources, Commission XII of the House of Representatives will continue to support policies capable of strengthening national energy security.