Indonesia Officially Sets Bioethanol Price at Rp 11,695 per Litre for August 2026

The Ministry of Energy and Mineral Resources has officially set the Market Index Price for bioethanol at Rp 11,695 per litre for August 2026. This figure represents an increase from the previous month’s price of Rp 10,933 per litre. The pricing formula is based on the average price of molasses over a three-month period multiplied by 4.125 kg/litre, plus a US$0.25 per litre component. The reference average molasses price was recorded at Rp 1,748 per kilogram, with an exchange rate of Rp 17,931 to the US dollar.

President Prabowo Subianto is aggressively promoting the development of bioethanol-based fuels, aiming for Indonesia to follow the lead of India and Brazil in ethanol blending. Speaking at a national harvest event in Malang, East Java, the President stated that Indonesia is currently capable of implementing E10, a blend of 10 percent ethanol in petrol, and has the potential to reach E20. He noted that India has already adopted E20, while Brazil uses E100 pure ethanol fuel. To achieve this, Prabowo announced plans to build at least 30 new bioethanol plants, as the country currently operates only one such facility.

Indonesia has already introduced E5 fuel commercially through Pertamax Green 95, a RON 95 petrol blended with 5 percent bioethanol. As of 1 August 2026, the price of Pertamax Green 95 is set at Rp 16,600 per litre, down from Rp 17,000 per litre in July.