Indonesia Starts E10 in 2027, E20 Target Accelerated

JAKARTA - The government targets the use of gasoline with a 10 percent ethanol mixture or E10 to start in 2027. The program will continue gradually towards E20 after the domestic ethanol industry is ready.

Energy and Mineral Resources Minister Bahlil Lahadalia said that the study on the obligation to mix ethanol had been carried out since 2025 and is now almost complete.

"E10 may be 2027 and directly to E20. So we are gradual first," said Bahlil at the Presidential Palace Complex, Jakarta, Monday (20/7).

The government previously planned to implement E20 in 2028-2029. However, Bahlil opened the opportunity for the target to be accelerated.

"The sooner the better," he said.

The ethanol program is aimed at reducing gasoline imports. However, the government does not want the reduction in fuel imports to be replaced by ethanol imports. Therefore, the new E20 obligation will only be fully implemented after domestic industry and raw materials are available.

The raw materials prepared include sugar cane, cassava, corn, and other commodities. The government is also designing a sugar cane plantation that is connected to the downstream industry.

Bahlil said Indonesia was studying the Brazilian industry model. Factories can switch production of sugar cane to sugar or ethanol according to changes in market prices.

The strategy for the implementation of E10 to E20 will follow the stages of the biodiesel program, from B10, B20, B30 to B50. President Prabowo also asked the government to study the possibility of implementing B60.

Bahlil has not explained the production capacity of ethanol needed, land needs, or the amount of investment to run the program.