Jakarta. Indonesia is preparing to mandate the use of E10, a gasoline blend containing 10 percent ethanol, as part of efforts to reduce emissions and dependence on imported fuel --a move that comes as several private fuel retailers face supply shortages.

Energy Minister Bahlil Lahadalia said the government aims to roll out the E10 requirement within the next two to three years, or by 2027–2028. “We want to reduce our reliance on imports and produce cleaner, more environmentally friendly fuel,” he said on Tuesday.

The plan builds on Indonesia’s broader biofuel strategy, including the ongoing B40 program --a 40 percent palm oil blend in diesel that is expected to rise to B45 or B50 by 2026-- to cut fossil fuel imports and promote sustainability.

The Energy and Mineral Resources Ministry (ESDM) confirmed that all vehicles sold in Indonesia can safely use fuel containing up to 20 percent ethanol, ensuring that an E10 mandate would not require engine modifications.

The announcement followed reports that fuel retailers Vivo Energy Indonesia and BP had declined base fuel supplies from state oil company Pertamina because of a 3 percent ethanol content. Both companies ran out of imported fuel stocks after the government imposed a single-gateway import policy requiring all foreign fuel shipments to go through Pertamina.

To resolve the issue, Energy Minister Bahlil held talks with major players including Shell, Vivo, BP, and ExxonMobil. Vivo and BP-AKR have agreed to move forward with technical discussions, while Shell awaits approval from its headquarters. ExxonMobil plans to begin negotiations in November as its current stock remains sufficient.

Pertamina President Director Simon Aloysius Mantiri said the company fully supports the government’s biofuel agenda. “Pertamina is aligned with the government’s plan to ensure national energy security. We already have the E5 product, Pertamax Green 95, which contains 5 percent ethanol,” he said.

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

The Indonesian Oil and Gas Companies Association (Aspermigas) urged consumers not to worry about ethanol-blended fuels, saying they are safe, legal, and widely used globally. “Ethanol content in Pertamina’s fuel remains within the government’s 30 percent limit and poses no safety risk,” said Aspermigas chairman Moshe Rizal.

Rizal added that ethanol blends are already common in the United States, Brazil, Germany, and across the European Union. “It’s unfair to say Pertamina’s fuel is inferior. It’s simply a matter of consumer preference,” he said.