If 50% Bioethanol Fuel (E50) is Realised, Indonesia Could End Petrol Imports!
The Ministry of Energy and Mineral Resources is assessing the potential implementation of bioethanol fuel with a 50% concentration (E50) to halt Indonesia’s dependence on petrol imports. The plan was discussed during the Plenary Session of the National Energy Council (DEN) as an alternative energy solution amidst global uncertainty.
The Minister of Energy and Mineral Resources, Bahlil Lahadalia, emphasised that the target to end petrol imports could be realised if the E50 programme is successfully executed. He explained that the raw materials for ethanol utilise domestic commodities such as sugarcane, cassava, and corn, which can absorb labour and drive regional economies.
“If we are able to achieve E50, God willing, our target of no longer importing finished petrol products will be met. If we can do this, our energy security will no longer depend so heavily on external sources; that is the core idea,” said Bahlil during a blood donation event at Balai Sudirman, Jakarta, on Monday (21/09/2026).
The E50 development plan draws inspiration from the success of Brazil and several US states that have produced 100% bioethanol (E100). Furthermore, the study is based on Indonesia’s achievements in developing B50 biodiesel from palm oil blends.
“Why? Because in Brazil, E100 is already in use. In parts of America, E100 is also implemented. Since the raw material for E50 is ethanol, and ethanol is derived from sugarcane, cassava, and corn, this process can create new jobs and foster regional growth,” Bahlim added.
The government is currently drafting a roadmap for the gradual implementation of bioethanol. The government targets the implementation of E10 to begin in 2027, progressing to E20 by 2028.
“When will this be implemented? It is part of a roadmap recently decided in the DEN. Our task now, alongside the Director General of Oil and Gas, is to design that roadmap. For example, we will implement E10 in 2027 and move towards E20 in 2028, and so on,” he added.
The government emphasised that the stages of bioethanol implementation must be aligned with the supply capacity of the domestic industry. This is to ensure that all ethanol requirements are met through domestic production without relying on foreign imports.
“However, we must adjust this to our industry. We do not want to implement E10, E20, or E50 only to have the ethanol imported from abroad; that would be the same thing. We want to utilise our domestic production,” he concluded.