Indonesia’s government has doubled its target for blending ethanol into gasoline, directing agencies on September 16 to prepare land and infrastructure for a 20 percent ethanol blend by 2028. The decision, announced after a cabinet meeting led by President Prabowo Subianto, aims to reduce the country’s dependence on imported gasoline as part of a broader energy self-sufficiency push.
Key Facts At A Glance
- Indonesia raised its target gasoline blend to 20 percent ethanol (E20) by 2028, accelerating a previously slower, phased rollout.
- The directive followed a limited cabinet meeting at the Presidential Palace in Jakarta on September 16, 2026.
- Coordinating Minister for Food Affairs Zulkifli Hasan said the government aims to secure 2 million hectares of sugarcane plantations across Java, Sumatra, Kalimantan, and Papua.
- Sovereign wealth fund Danantara has been assigned to develop ethanol processing infrastructure.
- Agriculture Minister Andi Amran Sulaiman was directed to prepare the land allocation plan.
- Officials said the E20 target could be met within two years if land targets are secured.
- Sugarcane was chosen as the primary feedstock over corn or cassava, citing existing plantation infrastructure.
Indonesia’s government moved to accelerate its national ethanol program, doubling the blending target it had previously set for 2028 as President Prabowo Subianto’s administration works to cut reliance on imported gasoline.
The decision followed a limited cabinet meeting at the Presidential Palace in Jakarta on September 16. Coordinating Minister for Food Affairs Zulkifli Hasan told reporters afterward that the government now aims to reach a 20 percent ethanol blend, known as E20, within two years, contingent on securing sufficient sugarcane feedstock and processing capacity.
Land And Infrastructure Push
President Prabowo directed Agriculture Minister Andi Amran Sulaiman to prepare roughly 2 million hectares of land for sugarcane cultivation across Java, Sumatra, Kalimantan, and Papua. Sovereign wealth fund Danantara has been assigned to oversee the industrial side of the program, including development of ethanol conversion facilities.
Zulkifli acknowledged that land availability has been a persistent bottleneck for the ethanol program but said the government believes the 2 million hectare target is achievable using existing plantation areas across the four regions. “Within the next two years, we can produce at least E20 fuel,” he said at the post-meeting press briefing.
The government identified sugarcane as its primary ethanol feedstock rather than corn or cassava, citing existing plantation infrastructure as the most immediately viable option for scaling up production.
Accelerated Timeline
The move represents an acceleration from Indonesia’s earlier roadmap, which had targeted a slower, phased approach before reaching a 20 percent blend. The bioethanol push follows a similar trajectory to Indonesia’s biodiesel program, which expanded gradually to its current blend level over several years.
Details on incentives for companies investing in new ethanol production facilities have not been disclosed, and the government has not specified how it will close the gap between current bioethanol production capacity and the volumes an E20 mandate would require.