by Dames Alexander Sinaga
Indonesia was preparing to impose a mandatory 10 percent bioethanol blend for fuel products by 2027 or 2028 as part of efforts to reduce dependence on fossil fuels and accelerate the transition to clean energy to curb carbon emissions.
The government has made notable progress in biodiesel, with a 40 percent blend already in place. A 50 percent mandate will take effect next year, allowing the country to halt diesel fuel imports starting in the second half of 2026.
After decades as a net importer of oil and fuel due to declining domestic production, Indonesia aims to achieve energy independence within five years under President Prabowo Subianto's administration. The development of bioethanol is central to this vision, ensuring that more energy demand is met from domestic resources.
Energy and Mineral Resources Minister Bahlil Lahadalia said his ministry would accelerate implementation of the 10 percent ethanol blend program, noting that Indonesia currently imports about 27 million kiloliters of fuel annually. The policy will undergo a trial phase, supported by efforts to boost local production of crops such as cassava and sugarcane, the main raw materials for ethanol.
The minister highlighted Brazil's success in producing and marketing ethanol-blended fuel as a model for Indonesia. In July, Prabowo and Lahadalia visited Brazil to explore cooperation in bioethanol and green energy development, recognizing Brazil's experience as valuable for Indonesia's energy transition.
State-owned oil and gas company PT Pertamina has expressed readiness to support the program, including public education campaigns aligned with existing vehicle technology. The company has marketed fuel containing a 5 percent ethanol blend through its Pertamax brand at more than 160 petrol stations across Java over the past two years.
To ensure supply, the government has allocated land for large-scale sugarcane and cassava plantations, according to the agriculture ministry. A bioethanol plant is also planned in Merauke, South Papua province, expected to begin operations in 2027. The facility will have three production units, each with an annual capacity of around 300,000 kiloliters.
The bioethanol initiative forms part of Indonesia's broader efforts to strengthen the biofuel industry and enhance energy security. Prabowo has instructed the government to tighten controls on ethanol imports to protect domestic producers and support the goal of energy self-sufficiency.
Editor:Leo
