Jakarta. Indonesia has sufficient plant-based materials to support its planned rollout of E20 gasoline, as it seeks to reduce reliance on imported fuel through bioethanol blending, Agriculture Minister Andi Amran Sulaiman said on Tuesday.

The government is preparing to introduce E20 — a fuel blend containing 20% ethanol — as a substitute for gasoline, which remains heavily import-dependent. The ethanol will be derived from crops such as cassava, sugarcane, corn, and palm oil, according to the minister.

“Supply is sufficient. We will expand planting — sugarcane, cassava and palm oil,” Amran said at a press conference at the Agriculture Ministry in Jakarta.

Indonesia will need to ramp up cultivation to sustain the program, but Amran said existing production capacity provides a strong foundation. The country currently exports up to 3 million tons of molasses annually — a sugar byproduct that can be processed into ethanol — offering a potential domestic supply source.

“That can be converted into ethanol, potentially producing around 300,000 kiloliters,” he said.

The E20 mandate is part of President Prabowo Subianto's strategy to strengthen energy security and reduce fuel imports. The government is targeting full implementation of E20 by 2028.

Amran pointed to Brazil as a benchmark, saying the South American country has successfully implemented E27 fuel — a 27% ethanol blend — demonstrating the viability of higher bioethanol mixes.

He added that advancements in automotive technology would support the transition. Flexible Fuel Vehicle (FFV) engines, which can run on gasoline, ethanol, or a mix of both, are already being developed by global manufacturers.

“If we stay consistent over the next decade, we can achieve energy independence. Ethanol is compatible with flexible engines,” Amran said, referring to the president’s directive to sustain the policy.

Beyond ethanol, Indonesia is also scaling up biodiesel production using crude palm oil (CPO) as feedstock. A B40 mandate — indicating a 40% palm oil mixture — has been in place over the past year, and even helped Southeast Asia’s biggest economy to save Rp 130.2 trillion (approximately $7.7 billion) in foreign exchange throughout 2025. 

CPO exports reached 32 million tons in 2025, up by 6 million tons from the previous year, driven in part by stronger global prices and government policy support, Amran said.

“Higher global prices have encouraged farmers to boost production, resulting in a 6 million ton surplus. This reflects the strength of current policies,” he added.

To ensure adequate raw materials supply for both ethanol and biodiesel programs, the Agriculture Ministry is strengthening coordination with state-owned enterprises. Officials have held meetings with state-owned companies to align production and supply chains, as part of a broader push toward energy self-sufficiency.

Amran said the initiative reflects Prabowo’s willingness to pursue bold strategic policies, linking food and energy security agendas.

“Once food security is secured, we move toward energy. State-owned enterprises have been assigned roles, and we will collaborate closely,” he said.

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