The government eyes nationwide implementation of 10% ethanol-blended gasoline to cut fuel imports and boost local agriculture.
Indonesia plans to implement mandatory use of E10 bioethanol-blended fuel — gasoline mixed with 10% ethanol — by 2027, as part of a national strategy to reduce fuel imports and strengthen energy independence, said Minister of Energy and Mineral Resources Bahlil Lahadalia.
2027 as the Target Year
Following the Cabinet Plenary Session at the Merdeka Palace on October 20, Bahlil announced that the government aims to roll out E10 bioethanol fuel by 2027 at the latest. The policy, he said, aligns with Indonesia’s efforts to reduce gasoline imports, currently at 27 million tons per year, while advancing toward energy sovereignty.
“According to my estimation, by 2027 at the latest, the E10 mandate will be operational,” Bahlil stated.
Strengthening Domestic Production
Bahlil emphasized that successful implementation of E10 depends on building domestic ethanol plants capable of processing local feedstocks such as cassava and sugarcane. This, he noted, would not only lower dependency on imported fuels but also create jobs and empower rural farmers.
“We must first establish ethanol factories domestically,” he said. “They will process cassava and sugarcane, which in turn will open new employment opportunities.”
Expanding Biofuel Programs
The E10 policy follows Indonesia’s success with its biodiesel program, which currently uses B40 (40% biodiesel) and is expected to reach B50 by 2026. Together, these initiatives are part of Indonesia’s broader renewable energy roadmap aimed at reducing fossil fuel reliance and supporting the Net Zero Emission (NZE) 2060 target.
Pertamina’s Role in Green Fuel Innovation
State-owned energy firm PT Pertamina has already taken steps toward ethanol integration by launching Pertamax Green 95 in July 2023. This fuel combines RON 92 gasoline with 5% ethanol (E5), marking Indonesia’s first commercial use of bioethanol-blended fuel.
Pertamina partnered with PT Energi Agro Nusantara, a subsidiary of PT Perkebunan Nusantara X, to secure ethanol derived from molasses, a byproduct of sugar production. The success of this collaboration is expected to pave the way for E10-scale production once domestic ethanol plants are ready.
Economic and Environmental Benefits
The shift to E10 is anticipated to yield multiple benefits — from reducing the national fuel import bill to stimulating the agriculture-based bioenergy sector. Additionally, increased ethanol use supports Indonesia’s sustainability commitments under its national energy mix and NZE 2060 framework.
Bahlil underscored that bioethanol production offers a “multiplier effect” across sectors — supporting farmers, rural industries, and renewable energy investors alike.
Indonesia’s planned E10 rollout marks a pivotal step toward cleaner energy and economic resilience. By investing in local ethanol infrastructure and strengthening collaboration among ministries, state firms, and farmers, the country aims to transform its energy landscape while fostering inclusive growth. For regional observers in Singapore and Malaysia, this development underscores Southeast Asia’s growing shift toward biofuel innovation and green industrial policy.
Sources: Katadata.co.id (2025) , Bisnis.com (2025)
Keywords: E10 Fuel, Bioethanol Indonesia, Renewable Energy, Energy Policy, Pertamina Green Fuel, Net Zero Emission
