Indonesia to roll out ethanol-blended gasoline, B50 biodiesel from July 1
Indonesia will introduce ethanol-blended gasoline alongside a higher 50% biodiesel mandate from July 1, an energy ministry official, marking a significant step in the country’s push to boost energy self-sufficiency and advance its transition to cleaner fuels.
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The plan is to launch the E5, a mix of non-subsidised gasoline with at least 5% ethanol, mandatory alongside B50 on July 1, said director general of renewable energy Eniya Listiani Dewi during the during the Indonesia Petroleum Association (IPA) conference.
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The E5 mandate will be first introduced in several select locations, before a nation-wide mandate a few years later, she said.
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"A ministerial decree will be issued on the volume allocation, but (the minister's) directive is that it must be (sourced) locally," Eniya said, adding only three companies have been identified as able to produced approximately 26,000 kiloliters.
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Indonesia will raise the mandatory blending rate for palm-based biodiesel to 50%, or B50, on July 1 from 40% currently. The implementation of B50 - a blend of 50% palm oil-based biodiesel and 50% conventional diesel - is part of a wider government program to mitigate Iran war risks.
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Indonesia's energy ministry has issued a ministerial decree setting the timeline for the implementation of its biofuel blending mandate, including E5 in Java, the country's most populated island, over the 2026-2027 period, and raise the proportion to 10% by 2028.
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