Indonesia to launch E5 ethanol-blended fuel programme in July
Indonesia will begin mandating E5 gasoline from July 2026 in selected regions, using domestically produced ethanol to strengthen energy security. Limited ethanol capacity restricts the initial rollout, while Pertamina expands infrastructure to support the country’s growing renewable fuel programme.
Indonesia will begin mandating the use of gasoline blended with 5 percent ethanol (E5) in selected regions from July 2026, marking a new step in the country’s biofuel and energy security strategy. The programme will initially be rolled out in limited areas due to constraints in domestic ethanol production capacity.
The Ministry of Energy and Mineral Resources announced that the first phase of the E5 mandate will cover Jakarta, East Java, West Java, Central Java, Yogyakarta, Bali and Lampung, Antara News reported.
Speaking at the IPA Convex event in Tangerang, Director General of New, Renewable Energy and Energy Conservation Eniya Listiani Dewi said the government plans to introduce the E5 mandate in July as part of broader efforts to expand the use of renewable fuels.
According to Eniya, Energy and Mineral Resources Minister Bahlil Lahadalia has directed that all ethanol used under the programme must be sourced from domestic producers rather than imports. The policy is aimed at strengthening national energy resilience and reducing dependence on international supply chains.
The government has identified three domestic companies capable of producing fuel-grade ethanol, with a combined production capacity of approximately 26,000 kilolitres. This available supply will determine the scale of the programme’s initial rollout.
Specific allocation volumes for the E5 mandate will be outlined in a forthcoming ministerial decree, enabling the programme to operate alongside Indonesia’s B50 biodiesel policy, which requires diesel fuel to contain 50 percent palm oil-based biodiesel.
Preparations for the launch are already underway. State-owned energy company Pertamina has completed market trials for E5 fuel and expanded the supporting infrastructure required for distribution. The company has established 179 locations for the programme and plans to add another 30 sites before the mandate takes effect.
However, officials said the government is still awaiting revisions to finance ministry regulations related to excise policies, which are considered essential for the nationwide implementation of the programme.
Regulatory discussions are also continuing regarding licensing requirements for ethanol producers. Eniya said biofuels have now been placed under the authority of the Ministry of Energy and Mineral Resources, a move expected to simplify the approval process by removing the need for industrial business permits and several administrative requirements.
The introduction of E5 fuel marks another milestone in Indonesia’s expanding biofuel programme as the country seeks to diversify its energy mix, reduce fossil fuel dependence and strengthen long-term energy security through greater use of domestically produced renewable fuels.
To Read more about Ethanol Industry & Bio Energy News continue reading Agriinsite.com
Source : ChiniMandi
