TEMPO.CO, Jakarta - Indonesia’s Ministry of Energy and Mineral Resources (ESDM) announced that the country will begin mandating the use of gasoline blended with 5 percent ethanol, known as E5, starting in July 2026 in several regions.
“We will begin implementing the mandatory 5 percent bioethanol blend (E5) in July, although initially only in selected locations,” Eniya Listiani Dewi, Director General of New, Renewable Energy and Energy Conservation (EBTKE), said during the IPA Convex event in Tangerang, Banten, on Thursday.
Eniya said the initial rollout would be limited because of constraints in domestic ethanol supply. The E5 mandate will apply in Jakarta, East Java, West Java, Central Java, Yogyakarta, Bali, and Lampung.
She added that Energy Minister Bahlil Lahadalia has instructed that 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.
“We have identified how much fuel-grade ethanol can currently be produced domestically. So far, only three companies have been identified,” Eniya said.
The combined production capacity of the three companies is estimated at around 26,000 kiloliters annually.
The government plans to regulate the fuel allocation through a new ministerial decree. The E5 mandate is expected to be implemented alongside Indonesia’s B50 biodiesel program.
Eniya said state-owned energy company Pertamina has already conducted market trials for E5 fuel, meaning the blended gasoline is already available in some areas.
“Pertamina has established 179 distribution points and plans to add 30 more. What we are currently waiting for is the revision of the Finance Ministry regulation on excise,” she said.
In addition to the regulatory revision, the ministry is also seeking clarity regarding licensing requirements for biofuel businesses, including whether companies will need industrial business permits or commercial licenses.
“Since the Indonesian Standard Industrial Classification (KBLI) for biofuel has now been placed under the Energy Ministry, it is becoming clearer that companies may no longer need industrial business permits,” Eniya said.
She expressed hope that the policy would simplify licensing procedures, as industrial permits currently require additional approvals from regional governors and other administrative requirements.
Read: Indonesia Tightens Vape Oversight as Youth Smoking Rates Climb
Click here to get the latest news updates from Tempo on Google News
Pertamina Explores Waste-to-Ethanol Fuel Technology
15 hari lalu
Pertamina partners with US-based LanzaTech to develop urban waste-based ethanol, addressing Indonesia's waste challenges.
Indonesia Pushes for 20% Ethanol Blend in Fuel
51 hari lalu
Indonesian Minister of Agriculture Andi Amran Sulaiman stated that the government is targeting a 20 percent use of ethanol in fuel oil.
Indonesia's US Bioethanol Import Plan Risks Double Subsidy, Trend Asia Says
11 Maret 2026
An agreement to import bioethanol from the United States (US) appears in the Agreement on Reciprocal Trade (ART) between Indonesia and the US.
Indonesia to Mandate Ethanol-Blended Fuel by 2028, Minister Says
9 Januari 2026
Minister of Energy and Mineral Resources Bahlil has stated that President Prabowo Subianto has approved the mandatory 10 percent ethanol blend for fuel oil.
How Adulterated Gasoline Damages Engines and Pollutes the Air
28 November 2025
Using adulterated gasoline poses various risks, including engine and vehicle system damage and air pollution.
Indonesia Plans to Mandate Ethanol Fuel Blend Starting in 2028
12 November 2025
The mandatory regulation of bioethanol has existed since 2008 through the Minister of Energy and Mineral Resources Regulation Number 32/2008.
Energy Minister Bahlil Denies Claims Ethanol Is Unsuitable for Fuel Use
28 Oktober 2025
Indonesia's Energy Minister Bahlil Lahadalia defended the use of ethanol as a fuel additive, citing its widespread adoption in other countries.
Toyota Keen to Build Ethanol Plant in Indonesia, Says Deputy Minister
28 Oktober 2025
If the E10 policy is implemented, the total ethanol demand is estimated to reach around 4 million kiloliters per year.
Indonesia, Brazil to Jointly Develop Ethanol Fuel, Says Energy Minister
24 Oktober 2025
Minister of Energy and Mineral Resources Bahlil aims to implement E10 ethanol-blended fuel by 2027-2028.
Indonesia to Roll Out 10% Ethanol Fuel Mandate by 2027, Minister Says
24 Oktober 2025
Minister Bahlil Lahadalia plans to introduce a mandate for the use of oil with a 10% ethanol content by 2027 to reduce Indonesia's gas imports.
