“By 2027, we will mandate our fuel to contain between 10 percent and 20 percent bioethanol,” Lahadalia said during a ceremony marking the Mining and Energy Anniversary at the National Monument in Jakarta.
He said the policy aims to develop renewable, plant-based energy sources and reduce reliance on imported gasoline. Data from the ministry show that Indonesia imported 330 million barrels of oil in 2024, including 128 million barrels of crude and 202 million barrels of refined fuel.
Lahadalia expressed confidence that the E10 mandate will significantly reduce fuel imports, citing the success of Indonesia’s biodiesel program, which has cut diesel imports through the implementation of the B40 blend.
According to ministry records, biodiesel utilization between 2020 and 2025 saved the country about $40.71 billion in foreign exchange by reducing diesel imports.
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The E10 initiative was also discussed during recent talks with Brazil, one of the world’s leading bioethanol producers. “Brazil has mandated E30 nationwide, and in some states, blends reach up to E85 or even E100,” Lahadalia said.
To learn from Brazil’s success, Indonesia has sent a delegation to exchange expertise on implementing ethanol mandates, while Brazilian experts will visit Indonesia to share their biodiesel experiences.
“Because this is something new, I’ve sent a team to Brazil to exchange views with experts there. They will also come here to share knowledge, including on regulatory frameworks,” Lahadalia added.
He said President Prabowo Subianto has approved the E10 mandate to help lower carbon emissions and reduce dependence on imported fuel.
Pertamina President Director Simon Aloysius Mantiri said the state-owned oil company is ready to implement the program, aligning its operations with the government’s plan to ensure national energy security.
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Translator: Putu Indah Savitri, Cindy Frishanti Octavia
Editor: Rahmad Nasution
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