Jakarta. The Energy and Mineral Resources Ministry (ESDM) has confirmed that vehicles sold in the country are technically capable of using fuel containing up to 20 percent ethanol, a move that could accelerate the government’s transition toward greener energy.

The announcement came amid reports that fuel retailer Vivo Energy Indonesia had rejected base fuel supplies from Pertamina due to a 3 percent ethanol blend.

“In fact, all cars in Indonesia -- regardless of brand -- are compatible with ethanol-blended fuel. Technically, engines can handle up to 20 percent ethanol,” said Eniya Listiani Dewi, Director General of Renewable Energy and Energy Conservation, on Monday.

Eniya noted that Pertamina has already begun market testing ethanol-based fuels through its Pertamax Green 95 product, which contains 5 percent domestically produced ethanol.

“Pertamax Green 95 uses a 5 percent ethanol blend sourced from within Indonesia,” she said, adding that the current limit remains at 5 percent due to the limited domestic supply of raw materials, such as corn and sugarcane.

In contrast, countries like the United States have long adopted E20 fuel -- gasoline blended with 20 percent ethanol -- as a standard option for consumer vehicles.

“If we made it mandatory today, we would struggle to find enough ethanol, because Minister Bahlil Lahadalia has made clear that we should avoid imports,” Eniya explained.

The government is now targeting domestic bioethanol production of between 150,000 and 300,000 kiloliters per year, sourced primarily from sugarcane plantations in Merauke, South Papua.

According to Eniya, the ministry aims to start production in 2027, with the project designed to replicate Brazil’s successful model of using sugarcane as a renewable energy feedstock.

The initiative forms part of Indonesia’s broader effort to reduce fossil fuel dependence, lower carbon emissions, and boost rural energy self-sufficiency through renewable alternatives.