Indonesia to Introduce 10% Ethanol-Blended Petrol (E10) by 2027 to Curb Imports

The Ministry of Energy and Mineral Resources (ESDM) has revealed a plan to implement petrol blended with 10% to 20% bioethanol (E10-E20) in Indonesia, with a phased rollout. Minister Bahlil Lahadalia stated that the E10 mandate would be introduced in 2027, before progressing directly to E20. “E10 perhaps in 2027, and then straight to E20. The goal is to complete the planning first. We will proceed in stages, copying the strategy used for B10, B20, B30, up to the current B50,” Bahlil said at the State Palace.

Bahlil explained that the study for the mandatory E20 programme had been underway since 2025 and was nearly complete, with implementation planned for 2028-2029. “The reason is that once we implement the mandatory ethanol programme, we can achieve efficiency or savings on fuel imports, specifically for petrol. But we do not want to implement E20 while importing the ethanol itself,” he said. Consequently, the government intends to prepare the bioethanol industry first, a process expected to take one to two years, utilising raw materials such as cassava, sugarcane, maize, and other commodities.

Previously, during a simultaneous mass harvest event with the Indonesian National Armed Forces (TNI) in Malang, East Java, President Prabowo Subianto expressed a desire to accelerate the development of the bioethanol industry. To realise this, the government requires the construction of dozens of new bioethanol plants. “We need factories. Currently, we only have one factory. I have decided we will build at least 30 factories, and if necessary, up to 50 factories,” Prabowo stated. He compared the adoption of bioethanol in other countries, noting that India has already implemented E20, while Brazil is even using E100, a pure ethanol-based fuel.