Jakarta. Indonesia will mandate a 10 percent ethanol blend in vehicle fuels starting 2027, in collaboration with Brazil, one of the world’s largest ethanol producers, the government announced on Friday.

Energy and Mineral Resources Minister Bahlil Lahadalia said the program marks a new step in Indonesia’s renewable energy roadmap, following discussions between President Prabowo Subianto and Brazilian President Luiz Inácio Lula da Silva during a bilateral meeting at the State Palace in Jakarta on Thursday.

“We exchanged views on cooperation in natural resource management, including renewable energy development,” Bahlil said.

He added that Indonesia will soon send a special delegation to Brazil to study the country’s ethanol production and distribution systems as part of efforts to finalize technical cooperation and investment plans.

The initiative, known as the E10 program, requires all gasoline sold domestically to contain 10 percent ethanol, complementing Indonesia’s existing B40 biodiesel policy, which mandates a 40 percent palm oil blend in subsidized diesel fuel.

“Starting in 2027, we will implement a mandatory E10 program. Since this is new for us, my team will go to Brazil to exchange knowledge with experts there,” Bahlil said.

The government also plans to increase the biodiesel blend to 50 percent (B50) next year, a move expected to eliminate diesel imports and make Indonesia’s domestic oil output sufficient to meet local demand.

Indonesia’s growing biofuel programs -- combining palm-based biodiesel and sugarcane-based ethanol -- form part of the country’s long-term strategy to reduce fossil fuel dependence, cut emissions, and boost rural bioenergy industries.

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