A new trade agreement between the United States and Indonesia is expected to expand opportunities for American ethanol shipments, according to the Renewable Fuels Association (RFA).
The association expressed appreciation to U.S. President Donald Trump and U.S. Trade Representative Jamieson Greer for concluding the agreement. RFA President and Chief Executive Officer Geoff Cooper said the deal comes at a time when U.S. ethanol exports are already at record levels.
He described Indonesia as a long-standing priority market, noting that if the country moves ahead with a nationwide 10 percent ethanol blend in fuel, demand could approach 1 billion gallons. Cooper said the arrangement would help supply cleaner and more affordable fuel to Indonesian consumers, while allowing Indonesia to prioritise its domestic production and rely on U.S. ethanol to meet any supply shortfalls.
Under the agreement, Indonesia has committed not to introduce measures that would block the import of U.S. ethanol. It will also begin supplying transport fuel blended with up to 5 percent ethanol by 2028, increasing the blend to 10 percent by 2030. The agreement further outlines Indonesia’s intention to work towards 20 percent ethanol blends in the future, subject to fuel availability and infrastructure readiness.
Separately, the RFA released its annual U.S. Ethanol Trade Statistical Summary, reporting that the United States exported a record 2.18 billion gallons of ethanol to more than 80 countries worldwide.
