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Indonesia Mandates 5% Ethanol Blend in Gasoline Starting July 2026

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Indonesia will mandate the use of gasoline mixed with 5% ethanol (E5) starting in July 2026 in select locations.
  • The mandate is limited to specific areas due to limitations in domestic ethanol raw material supply.
  • The government aims to achieve energy security and reduce import dependency, with raw materials sourced domestically.

Indonesia is taking a significant step towards enhancing its energy security and promoting renewable resources with the upcoming mandatory E5 gasoline blend, set to be implemented in July 2026. This initiative, spearheaded by the Ministry of Energy and Mineral Resources, underscores the nation's commitment to reducing its reliance on imported fossil fuels and fostering domestic bioenergy production.

In July, we will also mandate 5 percent bioethanol (E5), but only in several locations.

— Eniya Listiani DewiExplaining the initial scope and timeline for the E5 gasoline mandate.

The phased rollout, initially covering key regions like Jakarta, East Java, West Java, Central Java, Yogyakarta, Bali, and Lampung, acknowledges the current constraints in domestic ethanol supply. Director General of New, Renewable, and Energy Conservation Eniya Listiani Dewi emphasized that the raw materials for E5 must be sourced locally, a directive from Minister Bahlil Lahadalia aimed at bolstering national energy resilience. The identification of three domestic companies capable of producing the required fuel-grade ethanol is a positive development, though their current capacity highlights the need for further investment and expansion in the sector.

The raw materials for E5 must be domestically sourced and cannot be imported.

— Eniya Listiani DewiStating the government's policy to prioritize local production for energy security.

Republika, aligning with the government's vision for energy independence, reports on the logistical and regulatory steps being taken. The Ministry's efforts to streamline permits and await revisions on excise duties reflect a proactive approach to facilitating the E5 mandate. While challenges remain in scaling up production and ensuring consistent supply, the policy signals Indonesia's strategic move towards a more sustainable energy future, integrating biofuels into its national energy mix and aligning with global trends in cleaner fuel adoption.

Pertamina has already built 179 locations. It will add 30 more locations.

— Eniya Listiani DewiHighlighting existing infrastructure and expansion plans for E5 fuel distribution.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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