Minister Bahlil Seeks to Accelerate Bioethanol Blending in Fuel; Bobibos Under Consideration
The Minister of Energy and Mineral Resources, Bahlil Lahadalia, plans to accelerate the implementation of mandatory bioethanol blending policy in petrol. This comes in response to skyrocketing global oil prices that have exceeded 118 US dollars per barrel.
“Because if fossil fuel prices can exceed 100 US dollars per barrel, it becomes cheaper for us to blend,” Bahlil stated when met at the Energy and Mineral Resources Ministry office in Jakarta on Monday, 9 March 2026.
Bahlil had previously planned to mandate 20 percent ethanol content in petrol, known as E20, by 2028 to reduce petrol imports. This policy could be implemented earlier given the geopolitical dynamics in the Middle East affecting countries still dependent on fossil fuels.
“We are making it mandatory for petrol and it is cleaner,” said Bahlil.
Beyond mandatory E20, Bahlil also plans to accelerate the implementation of 50 percent biodiesel policy, or B50. B50 is a blended fuel consisting of 50 percent diesel and 50 percent biofuel based on palm oil. Indonesia currently implements mandatory B40, whilst B50 remains under review.
“There are several steps we will take. Certainly with the current circumstances, the government is considering finding the best alternatives to maintain national energy supply,” Bahlil added.
BOBIBOS Opportunity
Mulyadi, a representative from BOBIBOS (Original Indonesian-Made Fuel, Boss!), spoke about BOBIBOS’s potential as an alternative fuel for Indonesia amid Middle Eastern tensions. These tensions affect fuel prices due to security escalations in the Strait of Hormuz. Mulyadi stated that in principle, BOBIBOS is ready to serve as alternative fuel for the Indonesian public. However, this readiness is still hampered by government approval.
“We are ready. What we need is regulation, investment, and protection because this is an alternative, not a replacement, so it does not disrupt other fuel businesses,” Mulyadi told Republika on Monday, 9 March 2026.
Mulyadi emphasised the importance of protection for BOBIBOS development in Indonesia. Without it, he fears BOBIBOS will struggle to develop domestically.
“If there is no protection, then RIP (rest in peace) the BOBIBOS business,” said the parliamentary member from Commission V of Gerindra faction.
Mulyadi assured that BOBIBOS is ready to develop and deliver benefits to society after receiving approval. Currently, BOBIBOS, which is a fuel derived from rice straw, has not gained acceptance.
“Because mandatory energy transition is only for palm oil, sugar cane, and aren feedstock; rice straw has not been given space and opportunity,” Mulyadi said.
Mulyadi also highlighted the significant potential for developing rice straw as fuel in Indonesia, given the country’s extensive rice paddies.
“The area of our rice paddies, according to information from the Central Statistics Agency, is approximately 11 million hectares, so without opening new land we could also increase farmer welfare. Imagine 1 hectare of rice straw can produce 2,000 litres. For example, if we take just 5 million hectares, that is already 10 billion litres,” Mulyadi said.
If BOBIBOS is officially used in Indonesia, Mulyadi outlined six benefits. First, the public would benefit from cheap and quality fuel. Second, farmers’ income would increase. Third, state budgets would be saved by reducing imports. Fourth, the environment would be cleaner as plant-based sources produce near-zero emissions. Fifth, Indonesia would become energy independent.
“Finally, BOBIBOS could create jobs. So there are six benefits,” Mulyadi said.
On the other hand, due to insufficient government support, BOBIBOS is turning to other markets. BOBIBOS has found a path to approval for use in Timor-Leste.
“We are preparing a launch in Timor-Leste. We are awaiting the schedule of the Prime Minister and President as they will officiate it,” Mulyadi said.