Indonesia plans to implement an E10 gasoline blend by 2027, followed by an E20 mandate in 2028, to reduce reliance on imported fuel supplies.

National Biofuel Strategy

The Indonesian government has outlined a strategic timeline to transition its fuel sector toward higher ethanol concentrations. Under the proposed roadmap, the country aims to reach an E10 blend—containing 10% ethanol—by 2027. This will be followed by the introduction of E20, consisting of 20% ethanol, in 2028.

This policy shift is designed to address long-term energy security by decreasing the nation's heavy dependence on imported gasoline. By integrating more biofuels into the national energy mix, the government seeks to stabilise domestic fuel availability and mitigate the impact of global oil price volatility.

Domestic Ethanol Production

A central component of this transition involves the domestic sourcing of ethanol. To prevent new import dependencies, the government intends to ensure that the ethanol required for these blends is produced within Indonesia. This approach aims to support the local agricultural and biofuel manufacturing sectors.

Key objectives of the mandate include:

• Reducing fuel imports: Lowering the volume of refined petroleum products required from overseas.
• Strengthening domestic supply chains: Ensuring ethanol is sourced from local feedstock and producers.
• Energy independence: Creating a more self-sufficient energy framework through renewable biological resources.

Implementation Challenges

Moving toward higher ethanol blends requires significant coordination between the energy, agriculture, and transport sectors. The transition to E20, in particular, necessitates ensuring that existing vehicle engines and fuel distribution infrastructure can accommodate the higher ethanol content without technical complications.

Government authorities are tasked with scaling up domestic ethanol production capacity to meet the projected demand as the 2027 and 2028 deadlines approach. Success will depend on the ability of local industries to provide a consistent and high-quality supply of biofuel to the national grid.