Bahlil Confirms Mandatory 10% Ethanol Blend in Fuel to Start in 2027

KatadataOTO – The Indonesian government is finalizing the mandate for 10 percent ethanol (E10) in fuel oil (BBM). They have now determined when the policy will be implemented.

With various considerations, the government will implement the new regulation in two years.

"In 2027, we will mandate building our gasoline with E10 up to E20," said Bahlil Lahadalia, Minister of Energy and Mineral Resources (ESDM) to Antara, Friday (24/10).

Bahlil explained that the 10 percent ethanol policy is being implemented to create energy sources from plants.

Photo : Pixabay

Furthermore, it aims to build energy sovereignty so that Indonesia can reduce gasoline imports in the future.

The 10 percent ethanol mandate was even discussed when the Indonesian government met with the President of Brazil.

"They (Brazil) mandate E30 ethanol in their country. But in some states, it goes up to E100, and there is also E85," Bahlil asserted.

In order to replicate Brazil's success, Bahlil sent a team there to exchange views.

This is so they can learn from each other about implementing the ethanol mandate in the country, ensuring the regulation's implementation runs smoothly.

One Million Hectares of Land Have Been Prepared

For your information, various matters are being finalized by the government, such as preparing one million hectares of land.

This land will later be used to plant cassava, which will support the mandate for a 10 percent ethanol blend in fuel in the country.

"The one million hectares of land is an order from the President," said Andi Amran Sulaiman, Minister of Agriculture, on a different occasion.

The Minister of Agriculture explained that the plan to plant cassava will be carried out throughout Indonesia.

However, according to Amran, he cannot yet disclose the location of the land as it requires coordination with the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency.

Additionally, the government is still waiting for reports on which regions are most suitable for planting cassava.

Photo : Pertamina

It should be noted that ethanol fuel is not only made from cassava. It can also be made using corn or sugarcane.

On the other hand, President Prabowo is said to have approved the 10 percent ethanol mandate. This is to make fuel in Indonesia more environmentally friendly.

It can also reduce dependence on fuel imports, thus saving the state budget.