Jakarta, ThedailyID — Indonesia plans to begin rolling out E10 gasoline, which contains 10% ethanol, in 2027 as part of a broader strategy to reduce fuel imports and strengthen the country’s energy security.
Energy and Mineral Resources Minister Bahlil Lahadalia said the government will introduce the program gradually before moving to E20, a gasoline blend containing 20% ethanol.
“We will likely start with E10 in 2027 before moving to E20. We want to follow the same phased approach used for biodiesel, from B10 to B20, B30, and now B50,” Bahlil said on July 20 at the Presidential Palace in Jakarta.
According to Bahlil, the government has discussed the ethanol mandate with President Prabowo Subianto. Officials began studying the policy in 2025, and the review is nearing completion.
The government expects to finalize plans for E20 between 2028 and 2029.
Bahlil said the ethanol program aims to reduce Indonesia’s dependence on imported gasoline. However, the government wants to ensure domestic producers can supply enough ethanol before making the blend mandatory.
He said local ethanol production will rely on crops such as sugarcane, cassava, corn, and other agricultural commodities.
Over the next two years, the government plans to strengthen supporting industries before fully implementing the E20 mandate.
Indonesia is also preparing integrated sugarcane plantations and downstream processing facilities. Bahlil said the government is studying Brazil’s flexible production model, which allows producers to switch between sugar and ethanol depending on market prices.
In addition to expanding ethanol-blended gasoline, the government has started evaluating a possible increase in the biodiesel mandate from B50 to B60, following President Prabowo’s directive.
Currently, Pertamina sells Pertamax Green, Indonesia’s only commercial gasoline blended with 5% ethanol (E5). The government plans to expand ethanol use nationwide by introducing E10 before progressing to E20.
