10% ethanol blending is mandatory in Indonesia

In a major step toward reducing fuel imports and promoting cleaner energy, Indonesian President Prabowo Subianto has approved a new policy mandating that all fuel stations sell petrol containing 10% ethanol.

Energy and Mineral Resources Minister Bahlil Lahadalia announced the decision saying the move reflects the government’s dual commitment to energy security and environmental sustainability. The new regulation, known as the E10 policy, is expected to reduce dependence of Indonesia on imported fuels while fostering the use of cleaner and renewable energy sources.

State-owned oil and gas company PT Pertamina has welcomed the decision, calling it a strategic continuation of Indonesia biofuel transition. It said that the minister is working to strengthen the biofuel ecosystem. The company began with B40 biodiesel, and next year it plans to roll out the E10 program.

Indonesia introduced B40 biodiesel—a blend of 40 percent palm-based oil and conventional diesel—in January this year. Pertamina has also started introducing ethanol-based petrol under the Pertamax Green 95 brand, which contains five percent ethanol.

The approval of the E10 plan follows reports that some private fuel station operators were hesitant to purchase Pertamina’s imported base fuel containing 3.5 percent ethanol, contributing to temporary supply issues in recent weeks.

According to the Energy and Mineral Resources Ministry, most vehicles in Indonesia can safely operate on fuel blends containing up to 20 percent ethanol. However, Director General of New and Renewable Energy and Energy Conservation Eniya Listiani Dewi noted that ethanol levels are currently limited to five percent as the government assesses domestic availability of raw materials such as corn and sugarcane.