Three Indonesian Companies Agree to Collaborate on Building Bioethanol Supply Chain

The government is striving to accelerate the implementation of the mandatory 20% bioethanol blending in petrol by 2028. Director General of New, Renewable Energy, and Energy Conservation (EBTKE) at the Ministry of Energy and Mineral Resources, Eniya Listiani Dewi, emphasised the importance of speeding up production to meet that target. Her office will continue to ease regulations so that the bioethanol ecosystem from upstream to downstream can quickly form to support energy independence. “The implementation of bioethanol can no longer be delayed. The E20 target in 2028 requires a major leap, both in terms of supply and infrastructure. Therefore, collaborations like the one carried out today are key to ensuring production availability, offtaker certainty, and an integrated ecosystem from upstream to downstream,” Eniya stated, quoted from an official statement on Tuesday (28/4/2026). To support this programme, three national energy companies have agreed to develop a domestic bioethanol supply chain. This commitment is realised through the signing of three memoranda of understanding (MoU) by Pertamina New & Renewable Energy (PNRE) with PT Perkebunan Nusantara III (Persero) and PT Medco Energi Internasional Tbk through PT Medco Intidinamika. The memoranda of understanding cover three aspects. The first agreement involves collaboration between PNRE, PTPN III, and Medco to revitalise the bioethanol factory in Lampung with capacity and a multi-feedstock-based supply chain, including cassava and other commodities. The second collaboration between PNRE and PTPN III focuses on building a new bioethanol factory in Bone Regency, South Sulawesi, with support for land development and a raw material supply chain based on cassava, maize, and sugarcane. The third collaboration between Pertamina NRE and Sinergi Gula Nusantara is directed towards developing a molasses-based bioethanol factory integrated with the national sugar industry. Pertamina’s Director of Transformation and Business Sustainability, Agung Wicaksono, stated that utilising domestic potential is a concrete step in facing global geopolitical dynamics. “Through the synergy of the Pertamina Group with the plantation sector and strategic partners, we are optimistic that the bioethanol programme can drive import substitution and strengthen national energy independence,” he said. In addition, Pertamina NRE CEO John Anis explained that the estimated need for plant-based raw materials will surge significantly in the coming years. “The national bioethanol requirement to achieve the E20 target in 2028 is estimated to reach 3 to 5 million kilolitres. Therefore, the construction of several production facilities in various regions is needed with a multi-feedstock and multi-distribution approach,” he elaborated. These efforts also involve the role of the plantation sector as the main supplier of operational raw materials for the factories. PTPN III assures that this scheme not only strengthens the energy sector but also provides market certainty for farmers in the regions. Meanwhile, PTPN III President Director Denaldy Mulino Mauna emphasised that upstream supply availability is a priority for the company in this partnership. “PTPN will ensure feedstock availability, while Pertamina drives energy downstream. This is not just a project, but a joint effort to build a more independent and sustainable energy future for Indonesia,” Denaldy stated.