November 12, 2025 | 11:47 am
TEMPO.CO, Jakarta - Indonesia's Ministry of Energy and Mineral Resources aims to implement the mandatory policy of mixing bioethanol into fuel by 2028 at the latest. This step is part of the government's efforts to reduce dependence on high fuel imports.
The Director General of New Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources, Eniya Listiani Dewi, said that Indonesia's fuel imports currently total 22.8 million kiloliters, while its domestic production is only about 13.84 million kiloliters. "If 5 percent of ethanol can be blended into fuel, then 5 percent of imports can be substituted," Eniya said during a working meeting with the House of Commission XII (DPR) on Tuesday, November 11, 2025.
According to Eniya, the regulation on mandatory bioethanol has existed since 2008, as outlined in the Minister of Energy and Mineral Resources Regulation No. 32/2008. This regulation targets a 1 percent ethanol blend, which will increase to 5 percent by 2029. These provisions were then updated through Ministerial Regulations Number 12 of 2014 and Number 12 of 2015, but the implementation has not been optimal due to various field constraints.
To expedite implementation, Eniya said that the Ministry of Energy and Mineral Resources has been promoting market trials since 2023. Currently, Pertamina has been selling fuel blended with 5 percent ethanol under the Green 95 brand at 146 gas stations in Jabodetabek (Jakarta, Bogor, Depok, Tangerang, Bekasi), Central Java, East Java, Bandung, and Yogyakarta.
"The phases of mandatory ethanol will be further outlined in the ministerial decision as a derivative of Ministerial Regulation Number 4 of 2025. We target the E10 to be implemented by 2028, or earlier if infrastructure readiness and supply allow," Eniya said.
However, she acknowledged that this program still faces several challenges, including raw material availability, limited incentives, fluctuating vegetable oil prices, and environmental issues such as deforestation. In addition, the infrastructure for bioethanol production and distribution, including storage facilities at the fuel terminal and shipping modes, is not yet fully prepared.
From a technological standpoint, the bioethanol industry requires an efficient system and competitive production costs to avoid direct competition with food needs. "We also have to consider global market dynamics, including sustainability policies and trade barriers between countries," Eniya said.
She emphasized that the government will continue to enhance synergies between agencies and industry players to ensure the sustainability of the vegetable fuel program. "The implementation of mandatory ethanol must consider economic, environmental, and technological readiness comprehensively," she said.
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