Indonesia is accelerating plans to expand its bioethanol sector, with the government setting its sights on an eventual E50 petrol blend as part of a wider strategy to reduce fuel imports and improve national energy security.
The initiative follows the country's successful rollout of its B50 biodiesel programme and reflects growing government support for domestically produced renewable transport fuels. Bahlil Lahadalia, Indonesia's Minister of Energy and Mineral Resources, has said President Prabowo Subianto has instructed the National Energy Council to develop a roadmap towards E50, a fuel containing 50% ethanol and 50% petrol.
According to the ministry, Indonesia consumes around 39-40 million kilolitres of petrol annually. Officials believe increasing the use of domestically produced bioethanol could significantly reduce dependence on imported fuel products while insulating the country from global energy market volatility.
The proposed transition will be introduced in stages. Current plans call for the introduction of E10 in 2027, followed by E20 before progressing towards E50 as production capacity expands. The government has emphasised that ethanol used in the programme must be sourced from domestic feedstocks rather than imports.
Indonesia is looking primarily to sugarcane, cassava and corn as feedstocks for future ethanol production, with authorities also examining large-scale agricultural expansion to support long-term growth. The government has discussed developing millions of hectares of sugarcane cultivation and investing in new ethanol processing facilities to meet future demand.
The strategy mirrors biofuel policies adopted in countries such as Brazil and highlights Indonesia's ambition to become more self-sufficient in transport fuels. If achieved, the E50 target would represent one of the world's most ambitious ethanol blending programmes, strengthening both energy security and the country's renewable fuels industry while creating new opportunities across the agricultural and bioenergy sectors.
Indonesia targets E50 bioethanol blend to strengthen energy independence
