Three Companies Set to Supply Ethanol for Fuel Blending, Here Are the Names
The Ministry of Energy and Mineral Resources (ESDM) has revealed that the government has identified three local companies that will supply ethanol. This follows the planned commencement of the mandatory 5% bioethanol blending into petrol, known as E5, in the second half of 2026.
Eniya Listiani Dewi, Director General of New, Renewable Energy, and Energy Conservation (EBTKE) at the Ministry of ESDM, disclosed that there are new plants capable of producing fuel-grade ethanol (FGE) with a purity level exceeding 99 per cent. However, she did not provide specific details regarding all participants.
“We have clearly identified that there are several bioethanol plants in Indonesia, and some are already capable of producing fuel-grade bioethanol with a purity of more than 99%. From these, three companies will participate in the mandate, and we will determine the specific volume to be established in a ministerial decree,” Eniya stated during a meeting with Commission XII of the House of Representatives (DPR RI) on Thursday (4/6/2026).
According to Eniya’s presentation, several plants are set to produce fuel-grade ethanol (FGE) with a purity of over 99 per cent. 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, including East Java, DKI Jakarta, West Java, Banten, Central Java, and the Special Region of Yogyakarta (DIY). The government plans to expand the coverage of bioethanol application in subsequent years.
For instance, in 2027, the E5 programme will expand to include Bali. From 2028, the bioethanol blending ratio will be increased to 10% (E10) within the existing coverage areas. Between 2029 and 2030, the E10 implementation will expand further to include Lampung as a new region, bringing the total to eight participating regions.
The phased implementation plan for bioethanol usage is as follows:
2026: E5 (5%)
2027: E5 (5%)
2028: E10 (10%)
2029: E10 (10%)
2030: E10 (10%)