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Indonesia raised its gasoline bioethanol blend target to 20% by 2028, accelerating President Prabowo’s drive to cut fuel imports. The move follows July’s increase of the mandatory palm-based biodiesel blend to 50% and will require a large expansion o

2026-09-17

Indonesia raised its gasoline bioethanol blend target to 20% by 2028, accelerating President Prabowo’s drive to cut fuel imports. The move follows July’s increase of the mandatory palm-based biodiesel blend to 50% and will require a large expansion of ethanol supply; Indonesia currently operates a limited E5 programme. USDA data show domestic ethanol output this year at about 225 mln liters, roughly 15% above a decade ago. Most additional ethanol demand is expected to come from sugarcane, despite Indonesia’s heavy reliance on imports — USDA projects 2026-27 sugar imports of 4.2 mln tonnes against domestic production of 2.5 mln tons. Global policy support for crop-based fuels and recent Strait of Hormuz export disruptions have added momentum to demand.

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