Indonesia plans mandatory E50 bioethanol blend to cut fuel imports by 2027
Coordinating Minister Bahlil Lahadalia said the government will mandate a 50% bioethanol-gasoline blend starting in 2027, after assessing domestic production capacity through 2028.
During the HPPI national working meeting in Jakarta, Coordinating Minister for Energy Downstreaming and Transition Bahlil Lahadalia confirmed that Indonesia is preparing a mandatory E50 fuel policy, requiring gasoline to contain 50 percent bioethanol. The rollout is scheduled for 2027, with a capacity review extending to 2028 to guarantee that domestic ethanol production can meet demand without reliance on imports. The policy mirrors the earlier B50 biodiesel initiative that achieved diesel self-sufficiency.
Feedstock for the ethanol will come from sugarcane, cassava and corn, and the government expects the mandate to spur regional economic hubs and provide guaranteed buyers for cassava growers. Indonesia currently imports about one million barrels of fuel daily, a gap the E50 blend seeks to narrow. Officials highlighted that the ethanol mandate will also drive the construction of processing infrastructure across the country.
Why it matters
The E50 mandate could reduce Indonesia's fuel import bill and create new markets for local farmers.
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