Indonesia will mandate gasoline blended with 5 percent ethanol, known as E5, in selected regions starting in July 2026 as part of efforts to strengthen domestic energy security.
The policy will initially apply in limited locations due to constrained domestic ethanol feedstock supply, the Ministry of Energy and Mineral Resources said on Thursday.
Director General of New, Renewable Energy and Energy Conservation at the Ministry of Energy and Mineral Resources Eniya Listiani Dewi said the rollout would cover Jakarta, East Java, West Java, Central Java, Yogyakarta, Bali, and Lampung.
“In July, we will also mandate 5 percent bioethanol (E5), but only in several locations,” Eniya said at the IPA Convex event in Tangerang, Banten.
She said Energy and Mineral Resources Minister Bahlil Lahadalia had instructed that all ethanol feedstock must come from domestic producers rather than imports.
The directive reflects the government’s push to strengthen energy resilience and reduce reliance on overseas supply chains, she added.
“We have identified how much fuel-grade ethanol can be produced. So far, only three companies have been identified,” Eniya said.
The three producers have a combined bioethanol capacity of about 26,000 kiloliters, which will determine the initial allocation under the program.
Detailed volumes will be set out in a new ministerial decree, allowing the E5 rollout to proceed alongside Indonesia’s B50 biodiesel policy, which requires diesel fuel to contain 50 percent palm oil-based biodiesel.
Eniya said state energy company Pertamina had already conducted market trials for E5 and expanded supporting infrastructure ahead of the mandate.
“Pertamina has built 179 locations. It will add 30 more locations. What we are really waiting for now is the issuance of the revised Finance Ministry regulation on excise,” she said.
The government is also awaiting regulatory clarity on whether producers will require industrial business permits or commercial trading licenses.
Eniya said biofuel classification had been placed under the Energy and Mineral Resources Ministry’s authority, eliminating the need for industrial business permits. The move is expected to simplify licensing by removing requirements such as gubernatorial recommendations and other administrative approvals.
Related news: Indonesia maps out 920,000 ha of land for ethanol production push
Related news: Indonesia to end diesel imports by 2026, minister confirms
Related news: Indonesia pushes B50, E20 to cut fuel imports
Translator: Putu Indah Savitri, Martha Herlinawati Simanjuntak
Editor: M Razi Rahman
Copyright © ANTARA 2026
