Mandatory 5% Ethanol-Blended Fuel (E5) Set for July 2026: Three Local Suppliers Identified
The Ministry of Energy and Mineral Resources (ESDM) has revealed that the government has identified three local companies that will supply ethanol for the mandatory programme to blend 5% bioethanol into petrol, known as E5, starting in the second half of 202<0xC2>6.
Eniya Listiani Dewi, Director General of New, Renewable Energy, and Energy Conservation (EBTKE) at the Ministry of ESDM, disclosed that there are three new plants capable of producing fuel-grade ethanol (FGE) with a purity level exceeding 99%. While she did not provide specific details on the companies, she confirmed their involvement in the mandate.
“We have clearly identified that several bioethanol plants in Indonesia are already capable of producing fuel-grade bioethanol with a purity of more than 99%. From these, three companies will enter the mandatory programme, and we will determine the specific volumes to be set in a ministerial decree,” Eniya stated during a meeting with Commission XII of the Indonesian House of Representatives (DPR RI).
According to Eniya’s presentation, several new plants will produce fuel-grade ethanol (FGE) with a purity of over 99%. These include PT Indonesia Ethanol Industry in Lampung with a capacity of 20,000 kilolitres (KL), PT Madu Baru in Yogyakarta with 7,500 KL, and PT Indo Acidatama in Solo with 3,000 KL. Additionally, in East Java, PT Energi Agro Nusantara and PT Molindo Raya Industrial operate with FGE capacities of 30,000 KL and 10,000 KL, respectively.
The implementation of E5 in 2026 will cover six regions: East Java, DKI Jakarta, West Java, Banten, Central Java, and the Special Region of Yogyakarta (DIY). The Ministry plans to expand the coverage of bioethanol application in subsequent years. For instance, in 2027, the E5 programme will expand to include Bali. By 2028, the ethanol blend concentration will be increased to 10% (E10) within the existing coverage areas.
From 2029 to 2030, the E10 implementation will expand further to include Lampung, bringing the total to eight regions participating in the programme. The planned timeline for bioethanol utilisation is as follows:
2026: E5 (5%)
2027: E5 (5%)
2028: E10 (10%)
2029: E10 (10%)
2030: E10 (10%)