January 9, 2026 | 09:45 am
TEMPO.CO, Jakarta - Indonesian Minister of Energy and Mineral Resources, Bahlil Lahadalia, will mandate the use of ethanol blends in fuel oil by 2028 at the latest. "I assure you, no later than 2028 there will be a mandatory requirement for bioethanol. Perhaps in 2027-2028," said Bahlil as quoted by Antara, on Friday, January 9, 2026.
He mentioned that the government is designing a roadmap for implementing bioethanol. Separately, the Director General of New Energy, Renewable Energy, and Energy Conservation (EBTKE) at the Ministry of Energy and Mineral Resources, Eniya Listiani Dewi, stated that excise tax issues related to ethanol have been discussed with the Ministry of Economic Affairs Coordination.
She stated that the Ministry of Finance has waived the excise tax for ethanol used in biofuel. However, this exemption only applies to businesses with commercial permits. Eniya referred to Pertamina, which already holds a commercial trading permit (IUN). This permit exempts Pertamina from paying the ethanol excise tax. "We are currently discussing whether the revision of Presidential Regulation 40 (Year 2023 on the Acceleration of National Sugar Self-Sufficiency and Bioethanol) includes tax relief," said Eniya.
Previously, Bahlil mentioned that President Prabowo Subianto has approved a mandatory 10 percent ethanol blend for fuel oil. This is consistent with the goal of reducing carbon emissions and dependence on imported fuel oil.
Bahlil said that incentives will be provided for companies that build ethanol plants in Indonesia to support the plan for a mandatory 10 percent bioethanol (E10) blend. Todotua Pasaribu, the Deputy Minister of Investment and Public Enterprise, stated that the world-renowned Japanese automotive company Toyota is seizing the opportunity to invest in meeting Indonesia's bioethanol needs.
Read: Toyota Keen to Build Ethanol Plant in Indonesia, Says Deputy Minister
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