Indonesia to Introduce E10 Gasoline in 2027, Accelerating E20 Target

The Indonesian government is targeting the introduction of E10 gasoline, which contains a 10 percent ethanol blend, starting in 2027. The program will gradually transition towards E20 (20 percent ethanol blend) once the domestic ethanol industry is ready. Minister of Energy and Mineral Resources, Bahlil Lahadalia, stated that the study on the mandatory ethanol blend has been underway since 2025 and is nearing completion. "E10 may be in 2027, and then directly to E20. So, we will proceed gradually first," Bahlil said at the Presidential Palace Complex in Jakarta on Monday (20/7). The government had previously planned to implement E20 between 2028 and 2029. However, Bahlil has opened up the possibility of accelerating this target. "The sooner, the better," he remarked. The primary aim of the ethanol program is to reduce gasoline imports. However, the government is keen to avoid replacing fuel imports with ethanol imports. Therefore, the full implementation of the new E20 obligation will only occur after domestic industry and raw material availability are sufficiently secured. Prepared raw materials include sugarcane, cassava, and corn. The government is also designing sugarcane plantations integrated with downstream industries. Bahlil indicated that Indonesia is studying the Brazilian industry model, where factories can switch production between sugar and ethanol based on market price fluctuations. The strategy for implementing E10 to E20 will follow the stages of the biodiesel program, from B10, B20, B30, to B50. President Prabowo has also requested the government to study the possibility of implementing B60. Details regarding the required ethanol production capacity, land needs, and investment amounts for the program have not yet been explained by Bahlil.