Jakarta: Indonesia plans to roll out gasoline blended with 10% ethanol (E10) in 2027 and gradually increase the blend to E20 as domestic ethanol production capacity expands, Energy and Mineral Resources Minister Bahlil Lahadalia said.
The move forms part of the government’s strategy to reduce dependence on imported gasoline while promoting the use of domestically produced renewable fuels, VOI reported.
Speaking at the Presidential Palace on Monday, Bahlil said a government study on the mandatory ethanol blending programme, launched in 2025, is nearing completion.
“We may start with E10 in 2027 and gradually move to E20. The sooner we can implement it, the better,” he said.
The government had earlier planned to introduce E20 between 2028 and 2029, but Bahlil indicated that the timeline could be advanced if domestic ethanol production is ready.
Indonesia intends to produce ethanol from sugarcane, cassava, corn and other agricultural feedstocks. The government is also developing integrated sugarcane plantations linked to ethanol production facilities to ensure a stable domestic supply of feedstock.
Bahlil said Indonesia is studying Brazil’s sugar and ethanol industry, where mills can switch between producing sugar and ethanol depending on market conditions, allowing producers to respond to changes in demand and prices.
The ethanol blending programme is expected to follow the phased approach adopted for Indonesia’s biodiesel policy, which has progressed from B10 to B20, B30, B40 and B50. The government is also assessing the feasibility of introducing B60 biodiesel in the future.
Indonesia has linked the expansion of its ethanol blending mandate to the availability of domestic ethanol production, saying it does not want lower gasoline imports to be replaced by ethanol imports.
The minister did not disclose the production capacity, investment requirements or land needed to support the E10 and E20 programmes, saying those details would be announced after the government’s assessment is completed.
The planned rollout is expected to boost demand for sugarcane and other ethanol feedstocks while supporting Indonesia’s efforts to strengthen energy security, reduce fuel imports and expand the use of renewable transport fuels.
