Minister of Energy and Mineral Resources Says Ethanol Imports Are Open to Develop Clean Energy

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia said the government opened the opportunity to import ethanol, including from the United States, as one of the efforts to develop clean energy.

"We will mix (gasoline) with ethanol, mandatory, the goal is actually how to create new business opportunities that exist in Indonesia," said Bahlil as quoted by ANTARA, Friday, February 20.

He said the option of importing ethanol was open as long as domestic production was not able to meet national needs.

"However, as long as our production can meet domestic needs, then there is room for us to import," said Bahlil.

He said that the import opportunities run parallel with efforts to increase domestic energy production.

"Including imports from America, until our domestic production needs are met, this is just a parallel," he said.

The Minister of Energy and Mineral Resources explained the government's plan to require the mixing of gasoline with ethanol is one of the efforts to strengthen national energy independence and sovereignty.

Previously, the government emphasized its commitment to accelerate the implementation of the mandatory blending of bioethanol gradually.

This program is planned to start with E5 in 2028 and E10 in 2030, and is directed towards E20 by taking into account the readiness of production, distribution, and supporting infrastructure.

To support this transition period, the government opens up space for trade cooperation with various partners, including the United States, proportionally and measured according to domestic needs.

This policy is accompanied by efforts to strengthen domestic production capacity so that the national bioethanol industry can grow sustainably.

Overall, the implementation of the Agreement of Reciprocal Trade (ART/reciprocal trade agreement) in the energy and mineral resources sector is designed to be gradual, measured, and in line with national interests.

Bahlil emphasized that all of these commitments are aimed at strengthening the foundation of Indonesia's energy resilience in the long term.

"This is in line with what President Prabowo has ordered in order to realize what has been agreed upon so that this agreement is expected to be mutually beneficial for both parties. Must win-win. This agreement should not benefit one party only, but all parties should feel the benefits of this agreement," he said.