Three Companies Tapped as Ethanol Suppliers for Fuel Blending Programme

The Ministry of Energy and Mineral Resources (ESDM) has disclosed that the government has identified three local companies to supply ethanol following the commencement of the mandatory 5% bioethanol blending into petrol, known as E5, in the second half of 2026. Director General of New, Renewable Energy and Energy Conservation (EBTKE) Eniya Listiani Dewi revealed there are three new plants that will produce fuel-grade ethanol (FGE) with a purity level exceeding 99 percent, though she did not specify them in detail.

‘We have concretely identified that several bioethanol plants in Indonesia are already capable of producing fuel-grade bioethanol with purity above 99%. From these, three companies will be included in the mandate, and we will determine the volume to be stipulated in a ministerial decree,’ Eniya stated during a hearing with Commission XII of the Indonesian House of Representatives on Thursday.

Based on Eniya’s presentation materials, new plants set to produce fuel-grade ethanol with over 99% purity include PT Indonesia Ethanol Industry in Lampung with a capacity of 20,000 kilolitres (KL), PT Madu Baru in Yogyakarta at 7,500 KL, and PT Indo Acidatama in Solo at 3,000 KL. In East Java, there are also PT Energi Agro Nusantara and PT Molindo Raya Industrial, with FGE capacities of 30,000 KL and 10,000 KL respectively.

The E5 implementation in 2026 will be carried out across six regions: East Java, DKI Jakarta, West Java, Banten, Central Java, and the Special Region of Yogyakarta (DIY). The ministry plans to expand the bioethanol coverage in subsequent years. In 2027, the E5 programme will be expanded to include Bali as an implementation area. Starting in 2028, the bioethanol blend ratio will be increased to 10% (E10) while maintaining the same regional coverage. From 2029 to 2030, the E10 implementation will be further expanded by adding Lampung as a new region, bringing the total to eight areas participating in the programme.