Indonesia Sets Ambitious Ethanol Blending Target Amid Global Energy Shift

Indonesia has doubled its ethanol-blending goal to 20% by 2028, in an effort to reduce dependence on imported fuel. The country's Coordinating Minister for Food Affairs, Zulkifli Hasan, made this announcement after a meeting with President Prabowo Subianto in Jakarta.

The new target builds on momentum from July, when the mandatory palm-based biodiesel blend was raised to 50%. This move is part of a broader global push towards crop-based fuels, aimed at supporting farmers, lowering transport emissions, and bolstering energy security.

The authorities plan to dedicate roughly 2 million hectares across Java, Sumatra, Kalimantan, and Papua for growing sugarcane, with Danantara handling the construction of ethanol-processing capacity. Sugarcane was chosen as the most practical feedstock after considering corn and cassava.