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🇮🇩 Indonesia /Energy & Infrastructure

Indonesia Mandates 5% Ethanol-Blended Gasoline From July 2026

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Indonesia will mandate the use of gasoline blended with 5% ethanol (E5) starting July 2026 in selected regions.
  • The initial rollout is limited due to constraints in domestic ethanol supply, with only three companies currently capable of producing the required fuel-grade ethanol.
  • The government aims for all E5 raw materials to be domestically sourced to enhance energy security and reduce import dependence.

Indonesia is taking a significant step towards enhancing its energy security and promoting renewable resources with the upcoming mandate for E5 gasoline, a blend of 5% ethanol, set to be implemented in July 2026. This initiative, announced by the Ministry of Energy and Mineral Resources, signifies a commitment to reducing reliance on imported fuels and bolstering domestic production capabilities.

We will begin implementing the mandatory 5 percent bioethanol blend (E5) in July, although initially only in selected locations.

— Eniya Listiani DewiAnnouncing the phased implementation of the E5 gasoline mandate.

The phased introduction of the E5 mandate, initially in regions including Jakarta, East Java, West Java, Central Java, Yogyakarta, Bali, and Lampung, acknowledges current limitations in domestic ethanol supply. Director General of New, Renewable Energy and Energy Conservation, Eniya Listiani Dewi, highlighted that only three companies currently possess the capacity to produce the necessary fuel-grade ethanol, with an estimated annual output of around 26,000 kiloliters. This constraint necessitates a careful rollout to ensure stability and manage supply chains effectively.

A key tenet of this policy is the directive from Energy Minister Bahlil Lahadalia that all raw materials for the E5 program must be sourced domestically. This aligns with Indonesia's broader strategic goals of achieving greater energy independence and fostering local industries. The government is actively working on regulatory frameworks, including revisions to Finance Ministry regulations on excise taxes and clarity on licensing requirements for biofuel businesses, to facilitate this transition.

all raw materials for the E5 program must come from domestic sources rather than imports, in line with the government’s push for greater energy security and reduced dependence on imported fuel.

— Eniya Listiani DewiStating the government's policy on sourcing for the E5 program.

State-owned energy company Pertamina has already been conducting market trials for E5 fuel, indicating its readiness to integrate the blended gasoline into the market. The expansion of distribution points is underway, signaling a proactive approach to implementation. This move towards ethanol blending is expected to complement Indonesia's existing B50 biodiesel program, creating a more robust portfolio of renewable energy solutions for the transportation sector. From an Indonesian perspective, this policy is not just about environmental goals; it's a strategic imperative for economic resilience and national self-sufficiency in energy.

Pertamina has established 179 distribution points and plans to add 30 more.

— Eniya Listiani DewiProviding an update on Pertamina's E5 fuel distribution.
DistantNews Editorial

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

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