Inp.polri.go.id - Jakarta. Minister of Energy and Mineral Resources  Bahlil Lahadalia said on Friday (13/2/2026) that Indonesia will require a 20% ethanol blend in gasoline (E20) by 2028 to slash rising fuel imports. 

Speaking at the Indonesia Economic Outlook 2026, he said that with domestic gasoline demand projected to hit 40 million kiloliters against a stagnant production of 14 million, aggressive bioethanol integration is essential for energy sovereignty.

"Unless we are creative with ethanol blending, we will never achieve domestic self-sufficiency," Minister Bahlil said, highlighting the 23-million-kiloliter gap currently filled by imports.

To support this E20 roadmap, the government is offering incentives to firms constructing ethanol plants, including a new 30,000-kiloliter facility by state energy company PT Pertamina and SGN in East Java. 

Global automotive giant Toyota has also signaled investment interest in Indonesia’s bioethanol shift. By transitioning to higher biofuel blends, the administration aims to limit foreign dependency to raw crude oil imports only, aligning with President Prabowo's broader energy security strategy.

(mg/inp/pr/rs)