Indonesia will mandate the blending of 5% ethanol in gasoline in selected locations from July, due to insufficient feedstock available for a nationwide mandate, according to a news report by state-owned Antara on Friday.
Given that the core aim of the E5 blending is energy security, and in a bid to reduce dependence on imported fuel, Indonesia will utilize only domestically produced ethanol made from domestically sourced feedstock.
Three ethanol producers, with a total production capacity of 26,000 kiloliters, have been chosen to provide fuel-grade ethanol for the E5 blending program.
Indonesia imported around 21.59 million kL of gasoline in 2025, according to Global Trade Tracker. This means that the country can replace less than 1% of gasoline imports with ethanol currently.
The E5 mandate will be implemented alongside the new biodiesel mandate, which will raise the blend level in diesel to 50% nationwide from the present B40, also from July.
