Jakarta. Indonesia will impose new restrictions on ethanol imports to protect local producers, following a directive from President Prabowo Subianto, Agriculture Minister Andi Amran Sulaiman said Friday.

Amran told reporters that the directive, issued on Thursday, will be formalized through a Trade Ministry regulation in coordination with Chief Economic Affairs Minister Airlangga Hartarto and Chief Food Affairs Minister Zulkifli Hasan.

“Indonesia will import ethanol only as needed. If domestic supply is sufficient, imports will be halted,” Amran told reporters at a press conference in Jakarta on Friday.

The move comes after controversy surrounding Trade Ministry Regulation No. 16/2025, which removed import approval requirements covering ethanol, which is classified as “fuels.” The change sparked protests from sugarcane farmers and local ethanol producers, who argued it would open the door for cheaper imports and undermine domestic industry.

“We have spoken with the trade minister and reported to both coordinating ministers. The regulation could be issued today, or at the latest by Monday or Tuesday,” Amran said.

Industry stakeholders, grouped under the Indonesian Association of Spirit and Ethanol Producers (APSENDO), had earlier voiced concern that scrapping import restrictions could slash foreign exchange earnings from ethanol exports, which currently exceed $150 million annually. APSENDO chairman Izmirta Rachman warned in May that without careful management, the policy shift could deal a “serious blow” to an industry that has invested heavily and contributed significantly to the national economy.

The government has yet to clarify whether the new rule will come as a revision to the existing regulation or a fresh ministerial decree. “Let’s wait for the final decision,” Amran said.

Ethanol plays a strategic role in Indonesia’s energy diversification and biofuel program, which seeks to reduce reliance on imported fossil fuels and boost renewable energy use. Domestic ethanol, derived mainly from sugarcane and cassava, is used both as an industrial input and as a biofuel blend component. Producers argue that protecting the sector is critical to meeting the government’s long-term energy mix targets, which include a larger share of renewables by 2030.

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