Indonesia is set to implement a new policy mandating that all gasoline sold in the country be blended with 10% ethanol (E10). Coordinating Minister for Maritime and Investment Affairs, Bahlil Lahadalia, stated that the initiative aims to reduce Indonesia’s dependence on imported fuel and strengthen national energy security. Currently, around 60% of the country’s gasoline consumption is fulfilled through imports, which significantly burdens the state budget and trade balance. By introducing ethanol—a renewable energy source derived from sugarcane, cassava, and other crops—the government hopes to cut import costs while also supporting the growth of Indonesia’s bioenergy industry.
President Prabowo Subianto has reportedly approved the program, marking it as a strategic step toward energy diversification and sustainability. The ethanol blending mandate is expected to not only enhance fuel efficiency but also open opportunities for rural farmers and the agricultural sector through increased demand for bioethanol raw materials. The E10 policy represents a major move in Indonesia’s green transition agenda, aligning with broader efforts to promote cleaner energy use and reduce fossil fuel reliance in the years ahead.
