Jakarta. Indonesia needs at least 1 million hectares of sugarcane plantations to produce sufficient ethanol domestically as it prepares to introduce a 10 percent ethanol-blended fuel, or E10, within the next few years, a senior minister said Tuesday.

“If we add just 10 percent [ethanol blend], we’ll need one million hectares of sugarcane,” Chief Food Affairs Minister Zulkifli Hasan said at a press briefing in Jakarta.

Ethanol, derived from the fermentation of crops such as sugarcane, cassava, and sweet potatoes, is expected to play a key role in Indonesia’s transition toward renewable energy. Zulkifli estimated that such an expansion could yield up to 80 million tons of sugarcane annually, benefiting local farmers through guaranteed crop absorption.

The Energy and Mineral Resources Ministry (ESDM) has set the Merauke sugarcane processing plant in South Papua to produce between 150,000 and 300,000 kiloliters of ethanol per year once operational. The facility, part of a National Strategic Project covering 2 million hectares of plantations in Jagebob district, is slated for completion in 2027.

Energy Minister Bahlil Lahadalia said the government aims to fully implement the E10 policy by 2027 or 2028, stating that all vehicles sold in Indonesia are already compatible with fuels containing up to 20 percent ethanol. “We want to reduce our reliance on imports and produce cleaner, more environmentally friendly fuel,” Bahlil said.

The E10 rollout will complement Indonesia’s broader biofuel agenda, including the ongoing B40 biodiesel program, a 40 percent palm oil blend in diesel, which is expected to rise to B45 or B50 by 2026.

Agriculture Minister Andi Amran Sulaiman had announced new import restrictions on cassava and ethanol to protect domestic producers, in line with President Prabowo Subianto’s directives. The measure will apply under a limited prohibition scheme, allowing imports only when domestic supply falls short.

“This is a very strategic decision ordered by the President. If domestic supply is sufficient, imports will not be permitted,” Amran said, adding that local cassava farmers will be prioritized to meet domestic demand.