Indonesia Prepares 10% Ethanol-Blended Gasoline to Cut Fuel Imports and Carbon Emissions
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JAKARTA, Investortrust.id — The Indonesian government has begun preparing for the introduction of E10 gasoline — a 10% ethanol blend — as part of a long-term strategy to reduce fuel imports and curb carbon emissions. The initiative, endorsed by President Prabowo Subianto, marks a major step toward developing a domestic bioethanol industry.
Energy and Mineral Resources Minister Bahlil Lahadalia said on Tuesday, Oct 7, 2025, that the program would be implemented within two to three years after the completion of feasibility studies and testing phases. “We will push for E10. The President has approved the plan for a 10% ethanol mandate,” Bahlil stated in Jakarta.
Currently, Indonesia still imports about 60% of its gasoline consumption. Bahlil acknowledged that the transition would require significant preparation, particularly the establishment of ethanol production facilities. “We have to prepare ethanol factories first. The ethanol will come from sugarcane and cassava. The President has instructed us to build this industry,” he said.
The government plans to build two plants — one using sugarcane in Merauke, Papua, and another using cassava at a location still under assessment. Both are expected to support the national supply chain for bioethanol feedstock.
Pertamina’s Basefuel and Ethanol Content Debate
The announcement comes as the Ministry addressed recent controversy over ethanol content in Pertamina’s imported basefuel. Several private fuel distributors such as Shell, Vivo, BP-AKR, and ExxonMobil initially refused to purchase basefuel imported through PT Pertamina (Persero), citing the presence of 3.5% ethanol.
Bahlil clarified that the blend was safe and met government standards, having passed testing by the Research and Development Center for Oil and Gas Technology (Lemigas). “All fuels distributed to gas stations, whether by Pertamina or private distributors, are tested under government standards. If they don’t pass, they won’t be distributed,” he said.
The minister added that the ethanol limit set by the government is up to 20%. “Ethanol below 20% poses no problem as long as it’s pure at 99.95%, and Pertamina’s basefuel already meets that requirement,” he noted.
Pertamina imported around 100,000 barrels of basefuel to supply private distributors. While the initial shipment was rejected, private operators have since expressed willingness to renegotiate future cargoes, according to Pertamina Patra Niaga Deputy CEO Achmad Muchtasyar.
Ethanol Adoption Aligns with Global Decarbonization Trends
Globally, ethanol blending is a well-established strategy for decarbonizing transport. The United States has long adopted ethanol blends such as E10, E15, and E85, with E10 now serving as a national standard proven to reduce emissions without hurting engine performance. Europe and India are following suit — the European Union is evaluating E20, while India is targeting nationwide adoption of E20 by 2025.
Pertamina has already introduced a 5% ethanol blend in its Pertamax Green 95 product. Professor Tri Yus Widjajanto from the Bandung Institute of Technology said that a 3.5% ethanol content, such as in Pertamina’s basefuel, has minimal performance impact. “A 3.5% ethanol content only reduces engine power by about 1%, which is negligible,” he explained.
The International Energy Agency (IEA) reported that biofuel demand is rising rapidly across developing nations such as Brazil, Indonesia, and India, driven by stronger clean-energy commitments.
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Clarification on Pertalite: No Ethanol Additives
Pertamina Patra Niaga also emphasized that its popular RON 90 fuel, Pertalite, contains no ethanol additives. The clarification followed misinformation on social media claiming that Pertalite had been blended with ethanol.
Interim Corporate Secretary Roberth Dumatubun said all Pertamina fuels meet the official specifications set by the Energy Ministry. “Pertalite is made purely from hydrocarbon-based gasoline, without any ethanol. All products undergo rigorous quality control throughout production and distribution,” he said.
Roberth also explained that amateur “water tests” shown online misinterpreted basic chemistry. Gasoline is non-polar and naturally separates from water, creating the illusion of layering. “This is a normal physical reaction, not proof of ethanol content,” he said.
Academic Endorsement: Ethanol Safe and Strategic
Experts say ethanol blending not only supports emissions reduction but also strengthens Indonesia’s energy resilience. Muhammad Rifqi Dwi Septian from the Institute of Technology Sumatera said, “If properly managed, ethanol is highly promising. It’s environmentally friendly and can enhance national energy security.”
He dismissed concerns about engine corrosion, noting that modern vehicles are compatible with ethanol-blended fuels. “If produced and stored according to standards, ethanol poses very little risk,” Rifqi said.
Ethanol, derived from fermented crops such as sugarcane, corn, and cassava, is widely used worldwide to boost fuel octane and lower emissions. Indonesia’s adoption of ethanol-blended fuel is both technically viable and consistent with global efforts toward clean energy transition.