Indonesia to Accelerate Ethanol Blending as Oil Prices Surge
Indonesia plans to accelerate ethanol blending in gasoline as global oil prices surge above $118 per barrel. The government may fast-track its E20 fuel target and expand biofuel policies, including a potential B50 biodiesel mandate, to reduce fossil fuel dependence, strengthen energy security, and promote cleaner, renewable energy sources.
Jakarta. Indonesia plans to accelerate the adoption of bioethanol blending in gasoline as global oil prices surge above $118 per barrel, Energy and Mineral Resources Minister Bahlil Lahadalia said Monday.
The government is developing ethanol-blended fuel as part of its broader strategy to reduce reliance on fossil fuels and support the transition to cleaner energy.
The urgency of the policy has increased following the spike in oil prices triggered by the escalating military conflict involving the United States, Israel, and Iran.
“If fossil fuel prices exceed $100 per barrel, blending becomes more economical,” Bahlil said in Jakarta.
Bahlil previously announced a plan to introduce E20 gasoline — fuel containing 20% ethanol — by 2028 as part of efforts to reduce Indonesia’s dependence on imported gasoline.
However, the government may accelerate the timeline in response to geopolitical developments in the Middle East, which continue to affect countries heavily reliant on fossil fuels.
“We will introduce a mandatory blending requirement for gasoline, which will also make the fuel cleaner,” Bahlil said.
Expanding Biofuel Mandates
In addition to ethanol blending, the government is also considering accelerating the implementation of a B50 biodiesel mandate, which would require diesel fuel to contain 50% vegetable oil-based biofuel.
Indonesia currently enforces a B40 mandate, requiring 40% biodiesel content in diesel fuel, while the B50 policy remains under review.
Officials say expanding biofuel programs is part of Indonesia’s strategy to strengthen energy security, reduce fuel imports, and promote renewable energy development.
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Source : Jakarta Globe
