Indonesia plans to raise the ethanol content in domestic gasoline to 20% by 2029 from the current 5%, as part of efforts to reduce energy import dependence and strengthen national energy security, a senior government official said.
Deputy for Energy and Mineral Resources Coordination at the Coordinating Ministry for Economic Affairs Elen Setiadi said the government was targeting the rollout of the E20 programme by 2029 at the MINDialogue event in Jakarta on Wednesday, Antara News reported.
Indonesia currently mandates a 5% ethanol blend, known as E5. To achieve the higher target, the government plans to expand domestic ethanol feedstock production using agricultural commodities such as sugarcane and cassava.
Setiadi said molasses needed for ethanol production could be sourced partly from new food estate projects, including large-scale agricultural developments in Papua.
He said strengthening the domestic energy ecosystem was essential to support industrialisation and reduce the country’s vulnerability to external energy shocks.
“Energy security is a crucial foundation, followed by industrial downstreaming,” Setiadi said, referring to President Prabowo Subianto’s Asta Cita programme.
Recent geopolitical tensions and conflicts in the Middle East have reinforced the need for Indonesia to reduce its exposure to imported energy, Setiadi said. He cited the national B50 biodiesel programme as an example of how domestic biofuels could help cut dependence on imported diesel.
The government is also continuing to subsidise fuels such as diesel and Pertalite to maintain affordability while pursuing longer-term renewable energy programmes.
Setiadi said the government had assured consumers that prices of the two subsidised fuels would remain unchanged until the end of the year.
