Friday, 14 November 2025 03:21

Indonesia Allocates 920,000 Hectares for Ethanol Production to Boost Clean Energy Goals

Indonesia has mapped out around 920,000 hectares of land across 18 provinces to support its ethanol blend fuel initiative, marking significant progress toward its 1 million-hectare target for cassava and sugarcane cultivation. Agrarian Affairs Minister Nusron Wahid announced that this land will serve as feedstock for E10 fuel, a gasoline blend containing 10% ethanol, as part of Indonesia’s broader plan to strengthen energy independence and advance global clean energy commitments. Of the total identified land, 680,000 hectares come from expired or unextended concessions, while 240,000 hectares are reclaimed from idle government-designated land.

The government continues to seek an additional 100,000 hectares to complete the target before the E10 mandate begins in 2027, when national ethanol demand is expected to reach 1.4 million kiloliters annually. To encourage investment, Indonesia plans to offer incentives such as tax holidays to companies developing ethanol production facilities. The initiative is further supported through international cooperation, including a partnership with Brazil to develop ethanol-based biofuels. This large-scale effort reflects Indonesia’s commitment to transitioning toward cleaner energy sources and creating new opportunities for rural development and green industry growth.

source: https://en.antaranews.com/news/319911/indonesia-maps-out-920000-ha-of-land-for-ethanol-production-push

 

 

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