Ecobiz.asia – Indonesia plans to introduce a mandatory 20% ethanol blend in gasoline by 2027–2028 and eventually raise the blend to E50 as the government seeks to reduce gasoline imports and strengthen energy self-sufficiency, Energy and Mineral Resources Minister Bahlil Lahadalia said.
Bahlil said the government’s experience with the B50 biodiesel program had encouraged it to expand biofuel use from diesel to gasoline.
“We have successfully implemented the B50 program. Our total diesel consumption is around 38–39 million kiloliters per year,” Bahlil said in his keynote speech at the Investor Daily Summit 2026 on Wednesday (Oct. 7, 2026).
Before B50 was implemented, Indonesia remained dependent on diesel imports, he said. Under the program, diesel is blended with 50% FAME derived from palm oil.
“With B50, using FAME, a mixture derived from CPO and methanol, thankfully we no longer import diesel this year,” he said.
The government is now turning its attention to gasoline, where Indonesia remains dependent on imports.
“Diesel is clear, but gasoline is still a problem. For gasoline, we are still facing an issue,” Bahlil said.
He said increasing domestic oil production, or lifting, alone would not be enough to address the gasoline supply gap. The government therefore plans to combine higher oil production with greater use of biofuels.
“After trying to increase lifting, we need another approach. Because we have seen the success of B50, we will push for ethanol,” he said.
E20 to E50
Bahlil said President Prabowo Subianto had directed the government to introduce a mandatory 20% ethanol blend, or E20, in gasoline in 2027–2028, before eventually moving to E50.
“Based on the President’s direction, in 2027–2028 we will make a 20% mandatory blend, and going forward we will implement E50,” he said.
Bahlil said E50 could significantly reduce Indonesia’s need for imported gasoline.
“If we can implement E50, we will be able to reduce gasoline imports to a minimum and move toward energy self-sufficiency, so that everything can come from within the country,” he said.
The government plans to source ethanol from domestic agricultural commodities, including cassava, corn and sugarcane. Bahlil said developing ethanol could therefore support both energy security and economic activity in rural areas.
“Ethanol is made from cassava, corn and sugarcane,” he said.
The government’s strategy will combine higher oil and gas production through exploration and drilling with greater use of domestic agricultural resources.
“Our strategy is to increase lifting through fossil fuels, which is important through exploration, drilling and so on, while also utilizing our agricultural resources and the potential available on land,” Bahlil said.
He said developing domestic biofuel feedstocks could stimulate local economic activity and create jobs while helping meet energy demand.
Bahlil said the government would maintain the B50 biodiesel program while preparing higher ethanol blends for gasoline.
“So we will conduct exploration, optimize everything we already have, while maintaining B50 and moving toward E20 to E50 for gasoline,” he said.
Indonesia began preparing its E50 roadmap after President Prabowo instructed the government in September to study the success of B50 and apply a similar approach to gasoline. The earlier roadmap outlined by Bahlil envisaged E10 in 2027, E20 in 2028 and a gradual move toward E50.
Bahlil has also stressed that Indonesia does not want its ethanol-blending program to create a new dependence on imported ethanol. The government has said domestic production capacity and feedstock availability will be key considerations as the roadmap is developed.
He pointed to Brazil and the United States as examples of countries that have developed ethanol-blending programs, while China and India have also adopted mandatory ethanol blending. ***
