Indonesia Rolls Out E50 Bioethanol Mandate to End Gasoline Imports

Indonesia is set to roll out an E50 bioethanol blend mandate as part of its effort to eliminate finished gasoline imports. Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia stated that President Prabowo Subianto instructed the National Energy Council to draw up a roadmap toward E50, which contains 50 percent ethanol.

The plan follows Indonesia's successful deployment of the B50 biodiesel mandate, a blend of 50 percent palm-based fatty acid methyl ester (FAME) and 50 percent diesel fuel. With annual national gasoline consumption reaching 39 to 40 million kiloliters, the government aims to leverage domestic resources to protect national energy security from global geopolitical volatility.

The government has identified domestic sugarcane, cassava, and corn as primary raw materials for ethanol production, taking inspiration from Brazil's adoption of E100. Bahlil outlined a phased rollout plan for the bioethanol roadmap, starting with E10 in 2027 and advancing to E20 in 2028 before scaling up to E50.

However, he emphasized that the program must rely strictly on domestic agricultural supply rather than foreign bioethanol imports. 'We do not want to implement E10, E20, or E50 if the ethanol is imported from abroad; that would amount to the same thing,' Bahlil said, reiterating the government's commitment to self-reliance.