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 litres, 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 tonnes. Global policy support for crop-based fuels and
recent Strait of Hormuz export disruptions have added momentum to demand.
