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View all search resultsMinistries diverge on timeline for mandatory ethanol share in gasoline
The government’s plan to blend 10 percent ethanol into all gasoline faces uncertainty as key ministries offer conflicting timelines and targets, reflecting internal disagreement over the policy.
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Pertamina technology and innovation senior vice president Oki Muraza is seen on July 24, 2024, at the Pertamina and Toyota Sorghum Bioethanol Prime Filling event held at the Indonesia Convention Exhibition in Tangerang, Banten.
T
he government’s plan to blend 10 percent ethanol into all gasoline faces uncertainty as key ministries offer conflicting timelines and targets, reflecting internal disagreement over the policy's rollout.
The initiative was publicly endorsed by senior coordinating ministers with the aim of reducing the nation's massive fuel import bill and boosting the rural economy.
However, the Energy and Mineral Resources Ministry, which is responsible for its technical execution, now advocates for a more cautious and delayed timeline.
Coordinating Food Minister Zulkifli Hasan, speaking at the 40th Trade Expo Indonesia on Wednesday, announced that the mandatory E10 program should begin in 2026.
“It's mandatory [for gasoline to use 10 percent ethanol], but when we're ready, that's the President's order,” Zulkifli said, as reported by Bisnis, framing the policy as an economic game changer for farmers.
Read also: RI to establish methanol, ethanol factories to curb imports
He argued that demand for raw materials like cassava, sugarcane and corn would skyrocket as a result, adding that “the price of cassava could reach Rp 2,001 [12 US cents] per kilogram.”
