Indonesia Pushes Biofuel Mandates: E10/E20 Ethanol and B50 Biodiesel
Indonesia’s energy ministry announced that a 10 % ethanol blend (E10) will be mandatory in gasoline starting in 2027, with a phased move to a 20 % blend (E20) by 2028‑2029. Minister Bahlil Lahadalia said the policy aims to cut fuel‑oil imports and will rely on locally produced feedstocks such as cassava, sugarcane and corn.
The same ministry set a target for all fuel stations to dispense 50 % biodiesel (B50) by 1 October 2026, following a mandatory rollout that began in July 2026. Officials expect the program to lower carbon emissions, save about Rp 170 trillion in foreign‑exchange costs and create roughly 2.1 million jobs. The Coordinating Ministry for Economic Affairs assured that the B50 mandate will not curb crude palm‑oil exports, citing continued growth in both domestic demand and export volumes.
Additional measures include tighter monitoring of fuel distribution by Pertamina’s regional units and a review of non‑subsidised fuel pricing to keep consumer costs stable while reflecting global oil price changes.