Jakarta (ANTARA) - Indonesia aims to launch 10 percent ethanol-blended gasoline (E10) in 2027, Energy and Mineral Resources Minister Bahlil Lahadalia said on Monday, as part of government efforts to curb gasoline imports.

The rollout will serve as the initial phase of a broader plan to introduce E20 gasoline, containing 20 percent bioethanol, through a gradual implementation targeted for 2028–2029, Lahadalia said at the Presidential Palace complex in Jakarta, Monday.

Lahadalia said the government has been studying a mandatory ethanol blending policy since 2025, with the assessment now nearing completion. 

The findings will form the foundation for a national roadmap toward full E20 implementation.

"Our proposal for a mandatory ethanol policy has been underway since 2025, and our study is almost complete. E20 is part of the plan that we will finalize for implementation through 2028–2029," Lahadalia said.

The minister noted that the ethanol blending program is designed to reduce Indonesia's dependence on imported fuel while enhancing long-term energy security through greater reliance on domestically produced renewable fuel.

However, he stressed that the government would not enforce the E20 mandate unless sufficient domestic production capacity is established.

"We do not want to implement E20 only to end up importing ethanol. That is why we are preparing the industry first," Lahadalia  said.

He explained that ethanol feedstock would be sourced from domestic agricultural commodities, including cassava, sugarcane, and corn.

Over the next one to two years, the government will prioritize developing ethanol processing facilities and securing raw material supplies before expanding the blending requirement.

"For the next one to two years, we will prepare everything. After that, we will fully implement the E20 mandate," Bahlil said.

He added that the government will adopt the same phased approach used in Indonesia's biodiesel program, which successfully expanded from B10 to B20, B30, and currently B50.

In parallel, the government is preparing integrated sugarcane plantations and downstream processing projects to bolster domestic ethanol production.

Lahadalia pointed to Brazil's ethanol industry as a model, where processing plants can flexibly switch production between sugar and ethanol depending on global market prices.

"When ethanol prices rise, production switches to ethanol. But when sugar prices increase, it switches back to sugar. We will adopt this dual model, and we are currently finalizing preparations with several companies that will develop it," he said.

Pewarta: Maria Cicilia Galuh Prayudhia, Martha Herlinawati
Editor : Vicki Febrianto
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