Indonesian Political, Business & Finance News

Indonesian Fuel Companies Mandated to Mix 5% Ethanol into Petrol, Initial Regions Announced

| Source: CNBC Translated from Indonesian | Energy
Indonesian Fuel Companies Mandated to Mix 5% Ethanol into Petrol, Initial Regions Announced
Image: CNBC

The Ministry of Energy and Mineral Resources (ESDM) has confirmed that the programme to blend 5% bioethanol into petrol (E5) will begin implementation in the second half of 2026.

Eniya Listiani Dewi, Director General of New, Renewable Energy, and Energy Conservation (EBTKE) at the Ministry of ESDM, stated that this policy will be rolled out gradually, with the initial implementation covering the entire island of Java.

β€œThe use of bioethanol biofuel has been included in the ESDM ministerial decree to be implemented with a minimum of 5% starting in 2026, and the implementation area will encompass all of Java,” Eniya said during a working meeting with Commission XII of the Indonesian House of Representatives (DPR RI).

According to the presentation materials, the E5 implementation in 2026 will cover six regions, namely East Java, DKI Jakarta, West Java, Banten, Central Java, and the Special Region of Yogyakarta (DIY). The Ministry plans to expand the scope of bioethanol application in the following years.

For instance, in 2027, the E5 programme will be expanded to include Bali. From 2028 onwards, the bioethanol blend concentration will be increased to 10% (E10) within the existing coverage areas.

Between 2029 and 2030, the E10 implementation will be further expanded to include Lampung as a new region, bringing the total number of participating regions to eight.

The planned roadmap for bioethanol utilisation is as follows:

2026: E5 (5%)

2027: E5 (5%)

2028: E10 (10%)

2029: E10 (10%)

2030: E10 (10%)

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