The Indonesian government is targeting the nationwide implementation of petroleum fuel blended with 20 per cent ethanol, or E20, by 2029. This step is being taken to strengthen national energy security amid global geopolitical uncertainty, according to Elen Setiadi, Deputy for Energy and Natural Resources Coordination at the Coordinating Ministry for Economic Affairs.
Currently, bioethanol blending in domestic petrol has only reached five per cent, or E5. To meet the mandatory expansion of E20, the government plans to increase production of ethanol feedstock by utilising domestic agricultural commodities such as sugarcane and cassava. The primary source of molasses for this programme is expected to come from a newly developed food estate project, including large-scale agricultural development in Papua.
Setiadi emphasised that building a strong energy ecosystem is crucial for accelerating national industrialisation and ensuring the sustainability of the industrial sector. He said the President's directive under the Asta Cita programme places energy security as a crucial foundation, followed by industrial downstream development.
Setiadi cited the national biodiesel 50, or B50, programme as an example of success in strengthening energy security, noting that the initiative has effectively reduced Indonesia's dependence on diesel fuel imports. He also affirmed that the government remains committed to ensuring energy affordability through subsidised fuel, with the President guaranteeing that subsidised fuel prices such as diesel and Pertalite will remain at current levels until the end of the year.
