Antara News·Indonesia·Tuesday, October 6, 2026 at 02:22 PM UTC

Indonesia aims for 20 percent bioethanol blend within five years

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Shofi Ayudiana, Uyu Liman

Jakarta (ANTARA) - Indonesia plans to boost its biofuel usage over the next five years, aiming for a 20 percent bioethanol blend (E20) in gasoline as part of its broader national energy transition.

Speaking at the 2026 Indonesia International Sustainability Forum here on Tuesday, Coordinating Minister for Food Affairs Zulkifli Hasan expressed confidence in achieving the E20 target, citing the country's prior success in rolling out a 50 percent biodiesel blend (B50).

"Renewable energy investment reduces reliance on the fossil fuel industry and creates new jobs," Hasan said, emphasizing that biofuel development must balance economic transformation with strict food security and environmental protection.

He noted that this agenda is part of the government's broader efforts to build green economic growth.

To support this growth, the government is developing a credible and transparent carbon market to attract international financing.

Under Presidential Regulation Number 110 of 2025, Indonesia's carbon pricing framework includes carbon trading, carbon taxes, and results-based payments.

The push toward E20 requires massive agricultural mobilization. During a cabinet meeting in the Presidential Palace, Jakarta, on September 16, President Prabowo Subianto instructed Agriculture Minister Andi Amran Sulaiman to dedicate 2 million hectares of existing sugarcane plantations for bioethanol production.

The government selected sugarcane over corn or cassava because its existing land footprint makes it the most feasible feedstock.

Additionally, President Prabowo has tasked the state-owned Danantara Investment Management Agency (BPI Danantara) with preparing the domestic industrial sector for the E20 rollout.

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