Minister: Indonesia will introduce bioethanol blend gasoline as a mandatory requirement in 2027

Indonesia will impose a 10% bioethanol content requirement for gasoline by 2027 as part of its efforts to reduce its dependence on fuel imports, said its Energy Minister.

Southeast Asia aims to increase the use of palm oil and sugarcane biofuels to become energy self-sufficient. But ethanol supply issues have delayed the country's plans to mandate bioethanol in gasoline.

Bahlil lahadalia, the Minister of Energy and Mineral Resources of Indonesia, estimated that Indonesia will need 1.4 millions kilolitres to meet the 10% gasoline blend mandate.

He told reporters that he planned to get all of the ethanol on domestic markets.

Bahlil stated that corn, sugar cane, and cassava could be used as alternative feedstocks for ethanol.

Data from the Indonesian association of methylated spirits producers and ethanol producers revealed that Indonesia has enough capacity to produce up to 303,325 kilograms of bioethanol annually by 2024. However, output was only 160,946 kg, with imports being 11,829 kg.

Exports of reached 46,839 kilograms last year, while domestic demand was 125,937 kilograms. (Reporting and editing by David Stanway, Ananda Terresia, Benardette Christina)

(source: Reuters)