May 22, 2026 | 12:58 pm
TEMPO.CO, Jakarta - Indonesia’s Ministry of Energy and Mineral Resources (ESDM) announced that the country will begin mandating the use of gasoline blended with 5 percent ethanol, known as E5, starting in July 2026 in several regions.“We will begin implementing the mandatory 5 percent bioethanol blend (E5) in July, although initially only in selected locations,” Eniya Listiani Dewi, Director General of New, Renewable Energy and Energy Conservation (EBTKE), said during the IPA Convex event in Tangerang, Banten, on Thursday.Eniya said the initial rollout would be limited because of constraints in domestic ethanol supply. The E5 mandate will apply in Jakarta, East Java, West Java, Central Java, Yogyakarta, Bali, and Lampung.She added that Energy Minister Bahlil Lahadalia has instructed that all raw materials for the E5 program must come from domestic sources rather than imports, in line with the government’s push for greater energy security and reduced dependence on imported fuel.“We have identified how much fuel-grade ethanol can currently be produced domestically. So far, only three companies have been identified,” Eniya said.The combined production capacity of the three companies is estimated at around 26,000 kiloliters annually.The government plans to regulate the fuel allocation through a new ministerial decree. The E5 mandate is expected to be implemented alongside Indonesia’s B50 biodiesel program.Eniya said state-owned energy company Pertamina has already conducted market trials for E5 fuel, meaning the blended gasoline is already available in some areas.“Pertamina has established 179 distribution points and plans to add 30 more. What we are currently waiting for is the revision of the Finance Ministry regulation on excise,” she said.In addition to the regulatory revision, the ministry is also seeking clarity regarding licensing requirements for biofuel businesses, including whether companies will need industrial business permits or commercial licenses.“Since the Indonesian Standard Industrial Classification (KBLI) for biofuel has now been placed under the Energy Ministry, it is becoming clearer that companies may no longer need industrial business permits,” Eniya said.She expressed hope that the policy would simplify licensing procedures, as industrial permits currently require additional approvals from regional governors and other administrative requirements.Read: Indonesia Tightens Vape Oversight as Youth Smoking Rates ClimbClick here to get the latest news updates from Tempo on Google News
