Indonesia considering bioethanol-blended fuel mandate, minister says

Indonesian government is seeking to expand the use of biofuels made from palm oil and sugar cane

Indonesia is considering setting a mandatory bioethanol content level of 10 per cent for petrol sold in the country to lower carbon dioxide emissions and reduce its dependence on fuel imports, state news agency Antara reported on Tuesday (Oct 7), citing its energy minister.

Indonesia’s government is seeking to expand the use of biofuels made from palm oil and sugar cane as President Prabowo Subianto pushes the world’s fourth-most populous nation to become more energy self-sufficient. However, a mandatory bioethanol mix for petrol has faced implementation delays due to limited ethanol supplies.

“We had a meeting with the president yesterday evening. The president had agreed over the 10 per cent bioethanol mandatory plan,” energy minister Bahlil Lahadalia was quoted as saying.

The move is aimed at wean off petrol imports said Bahlil, as 60 per cent of the petrol consumed in South-east Asia’s largest economy is imported.

State energy firm Pertamina’s CEO Simon Aloysius Mantiri said that the company was ready to help implement the plan, according to Antara.

In a statement on Wednesday, Pertamina said to help reduce imports, it is also increasing upstream oil production and upgrading its Balikpapan refinery, aiming to start the refinery operations in November.

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Indonesia had the capacity to produce 303,325 kilolitres (kL) of bioethanol per year in 2024, but output stood at 160,946 kL with imports at 11,829 kL, according to data from Apsendo, an association of Indonesian methylated spirits and ethanol producers.

Domestic demand for bioethanol stood at 125,937 kL last year while exports reached 46,839 kL. REUTERS