Indonesia plans mandatory 20 per cent ethanol blend in petrol for 2027-2028
Officials are preparing land and processing plans for E20, with a longer-term ambition to raise the ethanol share to 50 per cent.
Indonesia is preparing to require petrol to contain 20 per cent ethanol in 2027-2028, minister Bahlil Lahadalia said on 7 October 2026. He said President Prabowo Subianto had directed the E20 plan, which aims to reduce reliance on imported petrol.
Speaking at the Investor Daily Summit 2026 in Jakarta, Bahlil described E20 as a step towards an eventual E50 blend. The coordinating minister for downstream industries and energy transition, who also serves as energy and mineral resources minister, said a successful E50 programme could minimise petrol imports.
Bahlil said ethanol could be produced from cassava, maize and sugar cane. He said the government intended to use domestic crops to support local economic growth and create jobs.
At an earlier cabinet meeting chaired by Prabowo on 16 September 2026, officials discussed implementing E20 in 2028. Coordinating Food Minister Zulkifli Hasan said the president asked Agriculture Minister Andi Amran to prepare a plan for land to grow bioethanol feedstocks, while investment agency BPI Danantara was tasked with preparing processing facilities.
Zulkifli said around 2 million hectares were being considered for sugar cane cultivation across Kalimantan, Sumatra, Papua and Java. He acknowledged that land availability had been an obstacle, but said mapping work indicated the area might be obtainable. He added that E20 would use domestic supplies and that the government intended to move gradually towards E50.
