Prabowo Ramps Up Ethanol Fuel Push with E20 Plan
Jakarta. President Prabowo Subianto has ordered an accelerated rollout of E20 fuel, a gasoline blend containing 20% ethanol, as Indonesia moves to shield itself from global energy shocks and curb rising fuel imports.
The policy is aimed at reducing reliance on imported fuels, particularly RON 92 (Pertamax) and RON 90 (Pertalite), amid mounting geopolitical risks disrupting global oil supply.
Agriculture Minister Andi Amran Sulaiman said the push for biofuel development is a direct response to escalating tensions between Iran and Israel, which have begun to pressure global energy markets.
“Our ambition is E20. Gasoline blended with 20% ethanol derived from corn, cassava, and sugarcane. This will replace part of our Pertalite and Pertamax imports. Our focus now is to strengthen energy sovereignty through biofuel,” Amran said at his ministry’s office in Jakarta on Monday.
He added that Indonesia has sufficient feedstock capacity, including molasses, a sugarcane byproduct currently exported in large volumes. The government plans to redirect around 1 million tons of molasses for domestic ethanol production through coordination among state-owned food enterprises.
“We export about 1 million tons of molasses. Starting next week, we have assigned respective roles to state-owned food companies to process it domestically,” he said.
Beyond gasoline substitution, Prabowo has also instructed the continuation of the palm oil-based biodiesel program, targeting a B50 blend to further reduce dependence on diesel imports. The program is projected to replace up to 5.3 million tons of diesel imports annually.
Amran said the worsening geopolitical landscape should be seen as an opportunity to accelerate Indonesia’s push for both food and energy self-sufficiency.
“There is a silver lining. The escalating geopolitical situation brings lessons and momentum for Indonesia,” he said.
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