RI Will Require Gasoline to Be Blended with 5 Percent Ethanol Starting July 2026

Director General of Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources, Eniya Listiani Dewi. (Photo: ANTARA)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) announced that Indonesia will require the use of gasoline with an ethanol blend of five percent or mandatory E5 starting July 2026 in several locations.

"In July, we will also require 5 percent of bioethanol (E5), but only in some locations," said Director General of New and Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources, Eniya Listiani Dewi, as reported by ANTARA, Friday, May 22.

Eniya said the obligation to use E5 in July 2026 only applies at a number of points, because there are limitations on the supply of ethanol raw materials.

The point of application of the E5 mandate includes Jakarta, East Java, West Java, Central Java, Yogyakarta, Bali, and Lampung.

He revealed that the Minister of Energy and Mineral Resources, Bahlil Lahadalia, ordered that raw materials from E5 must come from within the country, not be imported.

The order is motivated by the government's desire to realize energy independence without relying on imports.

"Yesterday we have identified how much ethanol fuel grade (for fuel) can be produced. Only three companies have been identified," said Eniya.

The production capacity of bioethanol from the three companies ranges from 26 thousand kiloliters (KL).

Later, the details of the volume allocation will be included in the new regulation in the form of a ministerial decision (ministerial).

Thus, the mandatory implementation of E5 will take place simultaneously with the mandatory B50.

Eniya added, in fact, Pertamina has already carried out a market trial of E5, so that the fuel has been widely circulated.

"Pertamina has built 179 locations. He will add another 30 locations. Well, this is what we are waiting for is the issuance of a revision to the PMK (Minister of Finance Regulation) on Taxes," said Eniya.

In addition to waiting for the revision of the Animal Health Law, Eniya also said that he was waiting for certainty regarding the type of permit, whether it was an Industrial Business Permit (IUI) or a business permit (IUN).

"Now, because of the KBLI (Indonesian Business Field Crude Classification) - we are pulling it to the Ministry of Energy and Mineral Resources for biofuels, it is clear that later there is no need for IUI," said Eniya.

Thus, he hopes to simplify licensing, because if the type of permit is IUI, business actors need to take care of the governor's recommendations and other requirements.