October 3, 2025 | 01:54 pm
TEMPO.CO, Jakarta - Indonesia's Pertamina Patra Niaga has responded to concerns over the ethanol content in its fuel, following the decision by PT Vivo Energy Indonesia and APR — a BP-AKR joint venture — to cancel their purchase of base fuel from Pertamina.
Pj. Corporate Secretary of Pertamina Patra Niaga, Roberth MV Dumatubun, explained that blending ethanol into fuel is an internationally recognized practice aligned with global efforts to reduce carbon emissions, improve air quality, and support the transition toward sustainable energy.
“Ethanol comes from renewable sources such as sugarcane and corn, making it more environmentally friendly compared to pure fossil fuels. By blending ethanol into fuel, vehicle emissions can be reduced, which contributes to better air quality,” Roberth said in a written statement on Friday, October 3, 2025.
He noted that ethanol blending has long been adopted in many countries. In the United States, the Renewable Fuel Standard (RFS) mandates ethanol blends such as E10 (10 percent ethanol) and E85 for flexible-fuel vehicles.
Brazil, a global pioneer in sugarcane-based ethanol, uses up to 27 percent blends (E27) nationwide, making ethanol fuel an integral part of daily life for decades.
In Europe, the Renewable Energy Directive (RED II) supports ethanol adoption, with E10 now standard in countries including France, Germany, and the UK.
Meanwhile, Asia is also moving forward, with India targeting a 20 percent blend (E20) by 2030 as part of its low-carbon transport roadmap while supporting its sugarcane industry.
“This is not a new practice. Ethanol blending has proven effective in reducing emissions, cutting dependence on fossil fuels, and supporting local economies through agriculture,” Roberth said.
He added that Pertamina Patra Niaga remains committed to government policy on carbon reduction in line with Indonesia’s Net Zero Emission 2060 target.
“The presence of ethanol-blended fuel shows Indonesia is ready to adopt international best practices for a greener and more sustainable future,” he emphasized.
The ethanol issue emerged after private fuel retailers canceled their planned purchases of Pertamina’s imported base fuel.
Pertamina Patra Niaga Vice Director Achmad Muchtasyar told lawmakers on Wednesday, October 1, 2025, that both Vivo and APR withdrew after laboratory tests showed ethanol content of 3.5 percent in Pertamina’s shipment from MT Sakura.
“Before 06:00 PM yesterday, AKR stated they would not continue. Then, after further discussions, Vivo also canceled at 7:40 PM local time. Eventually, APR followed suit,” Achmad said during a hearing with DPR Commission XII, the Directorate General of Oil and Gas, and private gas station representatives.
He explained that although the ethanol content was well below the 20 percent maximum allowed by regulations, it still prompted private retailers to back out.
“They are willing to negotiate for the next cargo, provided the content matches each brand’s specifications. Different brands apply different technical standards,” Achmad said.
Aside from ethanol levels, Achmad added, Pertamina and the private retailers also discussed other aspects such as transaction schemes, required fuel volumes, and commercial arrangements using a cost-plus fee system.
Nandito Putra contributed to the writing of this article.
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