Indonesia pushes E20 ethanol blend and B50 biodiesel mandates

Indonesia’s energy ministry is accelerating two major bio‑fuel programs. Minister of Energy and Mineral Resources Bahlil Lahadalia said the country needs 4 million kiloliters of ethanol each year for the upcoming E20 gasoline blend, which will combine 20 % ethanol with regular petrol to cut reliance on imported fuel. He added that the government will source ethanol from local feedstocks such as sugarcane, cassava and corn.

The mandatory B50 biodiesel program, mixing 50 % palm‑oil‑derived biodiesel with diesel, takes effect on 1 July 2026. Director‑General of Oil and Gas Laode Sulaeman explained that the launch will be presided over by President Prabowo Subianto and that a three‑month transition will allow existing B40 stock to be phased out. The policy is expected to reduce diesel imports, create a domestic market for palm‑oil products and generate significant foreign‑exchange savings.

Pertamina New & Renewable Energy is preparing a multi‑feedstock strategy—using molasses, cassava, sorghum and other residues—to secure enough bio‑ethanol for the E10/E20 blends. The combined fuel reforms aim to strengthen national energy security, boost the palm‑oil sector and lower greenhouse‑gas emissions.