Jakarta. Indonesia plans to procure ethanol through imports from the United States as part of its strategy to strengthen energy security and roll out higher biofuel blending mandates, Energy and Mineral Resources Minister Bahlil Lahadalia said, even as a broader US–Indonesia trade framework remains in limbo following a US court ruling on tariffs.

Bahlil said the government is preparing to import ethanol from the US to support the implementation of the E10 program, which mandates a 10% ethanol blend in gasoline. The policy is aimed at reducing Indonesia’s heavy reliance on fuel imports and increasing the use of renewable energy.

“One of our strategies to strengthen energy security is to mandate ethanol blending in gasoline,” Bahlil said during an online press conference on Friday. “Part of our gasoline will be mixed with ethanol on a mandatory basis.”

The plan to import ethanol is linked to the proposed Agreement on Reciprocal Trade between Indonesia and the US, which is currently in uncertainty after the US Supreme Court struck down President Donald Trump’s sweeping global tariff policy. In a 6-3 decision, the court ruled that Trump did not have the authority to impose global tariffs under the International Emergency Economic Powers Act, invalidating the so-called reciprocal tariffs that had threatened higher duties on imports from dozens of countries, including Indonesia.

Trump criticized the ruling as “very disappointing” and accused the justices of being influenced by foreign interests, without providing evidence. He insisted the decision would not stop him from pursuing alternative ways to reshape global trade rules.

Bahlil said ethanol imports from the US would continue in the near term until Indonesia is able to meet domestic demand on its own.

“As long as our domestic production cannot fully supply national needs, imports remain an option, including from the United States,” he said, before the Court announced its ruling.

Indonesia is accelerating preparations for bioethanol blending as part of a broader energy transition. Beyond E10, the government has announced plans to mandate a 20% ethanol blend, known as E20, by 2028.

According to government data, Indonesia’s gasoline consumption reached 37.3 million kiloliters in 2025, while domestic production stood at only 14.27 million kiloliters. The shortfall forced the country to import about 23 million kiloliters of gasoline last year. Demand is expected to climb to around 40 million kiloliters in the coming years, while refinery capacity remains largely unchanged at roughly 14 million kiloliters.

By introducing E20, the government aims to replace part of those imports with domestically produced bioethanol, primarily derived from sugarcane. Ethanol can also be produced from cassava and other starch-based crops, offering potential opportunities for Indonesia’s agricultural sector.

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