Indonesia delays 10% bioethanol gasoline mandate to 2028 amid supply constraints

Indonesia is pushing back the rollout of higher bioethanol blending in petrol, with the government now targeting 2028 to introduce a mandatory 10% ethanol mix, according to an energy ministry official.

Speaking at an energy seminar on Thursday, Tri Winarno said the delay was driven by limited ethanol supply, which has already disrupted earlier targets. The policy was initially scheduled to take effect in 2027 but has now been postponed by a year.

The Southeast Asian nation has been ramping up biofuel policies as part of a broader effort to curb fuel imports and strengthen energy self-sufficiency. Indonesia relies heavily on biofuels derived from palm oil and sugar cane, positioning them as key alternatives to conventional fossil fuels.

Under the revised roadmap, the government is aiming for a 5% mandatory ethanol blend by 2025, before increasing that requirement to 10% in 2028. However, Indonesia has already fallen short of the 2025 goal due to insufficient domestic ethanol production.

Energy ministry data shows the country plans to produce about 800,000 kilolitres of bioethanol by 2028, compared with gasoline consumption of nearly 40 million kilolitres annually.

Ahead of the higher blending mandate, authorities plan to take several preparatory steps. These include upgrading gasoline quality, expanding fuel infrastructure, and broadening the range of feedstocks used for ethanol production, Winarno said.

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