March 31, 2026 | 05:46 pm
TEMPO.CO, Jakarta - Minister of Agriculture Andi Amran Sulaiman stated that the Indonesian government is targeting a 20 percent use of ethanol or bioethanol in fuel oil. "Brazil is currently at 27, if I'm not mistaken, or 37, and now we are heading in that direction," said Amran Sulaiman at the Coordinating Ministry for Maritime Affairs and Investment office, Jakarta, on Monday, March 30, 2026.
To achieve this target, the Minister of Agriculture said the government needs 8 million tons of raw material for ethanol production. He mentioned that ethanol can be produced from domestic raw materials such as molasses, corn, and even sweet potatoes.
In addition to demonstrating energy independence, Amran Sulaiman stated that The successful implementation of an ethanol-fuel oil mixture indicates food self-sufficiency. "If this happens, by 2045 or 2044, Indonesia will be golden," he added.
Previously, the Minister of Energy and Mineral Resources Bahlil Lahadalia will require the use of a fuel oil mixture containing ethanol no later than 2028.
He mentioned that the government is designing a roadmap for implementing bioethanol. "I ensure that no later than 2028, there will be a mandate for bioethanol. Perhaps in 2027-2028," Bahlil said, citing Antara, on Friday, January 9, 2026.
Separately, the Director General of New and Renewable Energy and Energy Conservation at the Ministry of Energy, Eniya Listiani Dewi, stated that they have discussed ethanol tax issues with the Coordinating Ministry for the Economy.
The Ministry of Finance, she said, has waived the customs duties for ethanol used in vegetable fuel. However, this exemption only applies to businesses that have trade permits.
Eniya referred to Pertamina, which has a trade permit (IUN), exempting it from ethanol excise duties. "We are currently discussing whether the improvement of Presidential Regulation 40 (Year 2023 concerning the Acceleration of National Sugar Self-Sufficiency and Bioethanol) includes relaxation of excise duties," Eniya said.
Bahlil also mentioned that President Prabowo Subianto has approved the mandatory 10 percent ethanol mixture in fuel oil to reduce carbon emissions and dependence on fuel oil imports.
Bahlil stated that companies building ethanol plants in Indonesia will receive incentives to support the planned 10 percent bioethanol (E10) mandate. Deputy Minister of Investment and Industrial Estates, Todotua Pasaribu, mentioned that the world's automotive company from Japan, Toyota, is taking the opportunity to invest in meeting Indonesia's bioethanol needs.
Read: Indonesian Govt: No Fuel Price Rise for Subsidized, Non-Subsidized Types
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