Indonesia to mandate 5% ethanol-blended petrol from July 2026
Indonesia’s Ministry of Energy and Mineral Resources (ESDM) said the country will mandate the use of petrol with a 5 per cent ethanol blend (E5) starting in July 2026 in certain locations. ‘In July, we will also require 5 per cent bioethanol (E5), but only in a number of locations,’ said Director-General of New, Renewable Energy, and Energy Conservation (EBTKE) Eniya Listiani Dewi at the IPA Convex in Tangerang, Banten, on Thursday (21 May 2026).
Eniya said the E5 obligation in July 2026 will apply only at several sites due to constraints on ethanol feedstock. The locations of the E5 mandate include Jakarta, East Java, West Java, Central Java, Yogyakarta, Bali, and Lampung.
She revealed that Minister of ESDM Bahlil Lahadalia ordered that feedstock for E5 must come from domestic sources and cannot be imported, in a bid to bolster energy resilience without relying on imports.
‘Yesterday we identified how many ethanol fuel-grade (for fuel) can be produced. Only three companies have been identified,’ Eniya said. ‘The production capacity of ethanol from these three companies is around 26,000 kilolitres.’
Details of allocation will be set out in a new regulation in the form of a ministerial decree (kepmen). Accordingly, the mandatory E5 will run alongside the B50 mandate.
Eniya added that Pertamina has already conducted market trials of E5, so the fuel is already widely circulated. ‘Pertamina has built 179 locations. It will add 30 more locations. What we have been waiting for is the release of a revised PMK on excise,’ she said.
In addition to awaiting the PMK revision, she said they are awaiting clarity on the type of licence, whether an Industrial Business Licence (IUI) or a trading licence (IUN). ‘Now, with KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) being aligned to the Ministry of Energy and Mineral Resources for biofuels, it is clear that IUI will not be required,’ said Eniya.
Thus, she hopes licensing can be simplified; if the licence type is IUI, operators would still need governor’s recommendations and other requirements.