Indonesia Develops Financing Scheme for Bioethanol Program
Indonesia's government is developing a financing scheme for its mandatory bioethanol program. The plan aims to bridge the price gap between bioethanol-blended gasoline and those without, according to Energy Minister Bahlil Lahadalia.
Bahlil stated that the government will create a formula that benefits industry players, farmers, and the state. This includes setting prices for corn, cassava, and sugar cane, which are used as raw materials for bioethanol production.
The government also plans to cover any price differences when global oil is cheaper than bioethanol, similar to how the palm oil plantation fund BPDPKS covers the difference between biodiesel and diesel fuel. The plan is still being worked out.
Indonesia aims to roll out a 10% ethanol blend (E10) starting in 2027 before switching to E20. The country plans to gradually increase the ethanol mixture to 20% by 2029.