Indonesia Poised to Introduce New E5 Petrol, Awaits Ministerial Green Light

The Indonesian government is finalising plans to introduce a new petrol blend containing 5% bioethanol, known as E5, with the final decision now in the hands of Minister of Energy and Mineral Resources Bahlil Lahadalia. The programme, which had previously targeted a July 2026 launch, is awaiting the minister’s approval.

Eniya Listiani Dewi, Director General of New, Renewable Energy, and Energy Conservation at the Ministry of Energy and Mineral Resources, stated that the government is pushing for the establishment of bioethanol plants across all provinces to secure domestic supply. “We are encouraging all business entities to build bioethanol plants in every province, on every island. That is the concept,” Eniya said.

A significant barrier to the programme was removed with the elimination of the excise duty on ethanol. Eniya noted that the policy is now just waiting for the minister’s decision, as the excise exemption provides a clear investment signal. The programme will utilise various feedstocks, including sugarcane bagasse, corn cobs, and bitter cassava.

According to the Directorate General of New, Renewable Energy, and Energy Conservation, the initial implementation of E5 in 2026 is planned for six regions: East Java, DKI Jakarta, West Java, Banten, Central Java, and the Special Region of Yogyakarta. The plan outlines a phased expansion, adding Bali in 2027, before increasing the bioethanol blend to 10% (E10) in 2028 while maintaining the same coverage area. A further expansion of the E10 programme to include Lampung is scheduled for 2029 to 2030.