Energy ministry to launch E5 bioethanol mandate alongside B50 in July 2026

The Ministry of Energy and Mineral Resources said it will begin implementing a 5% bioethanol blending mandate, or E5, for gasoline in July 2026 alongside the rollout of the B50 biodiesel program.

Eniya Listiani Dewi, director general of new and renewable energy and energy conservation (EBTKE) at the ministry, said the initial phase of the E5 program will focus on regions located near domestic ethanol supply sources as part of the government’s efforts to strengthen national energy security.

“The E5 mandate will later be stipulated through a ministerial decree on volume allocation, so God willing it will start together with B50,” Eniya said on the sidelines of the Indonesian Petroleum Association Convention and Exhibition 2026 at ICE BSD City on Friday.

She said Energy Minister Bahlil Lahadalia had instructed that feedstock for the E5 program must come from domestic sources.

The ministry has so far identified three ethanol producers capable of supplying a combined 26,000 kiloliters of fuel-grade ethanol, Eniya said, adding that detailed volume allocations will be included in a forthcoming ministerial regulation.

“We have identified how much fuel-grade ethanol can be produced. So far, only three companies have been identified,” she said.

Read also: Lampung bioethanol plant nears feasibility completion, construction targeted this year

The ministry is also preparing regulatory changes related to ethanol licensing by introducing a new Indonesian Standard Industrial Classification (KBLI) category for biofuels under the ministry’s authority.

Under the new classification, businesses participating in the E5 program would no longer need an Industrial Business License (IUI), which currently requires recommendations from local governments.

 “We will introduce a new KBLI for biofuels, so it will be clear that an IUI will no longer be required. Trading license holders will be able to conduct blending directly at fuel stations,” Eniya said.

Under Energy Ministry Decree No. 113.K/EK.05/MEM.E/2026 and Energy Ministry Regulation No. 4/2025 on biofuel utilization, the E5 rollout in 2026 will initially cover key regions including East Java, Jakarta, West Java, Banten, Central Java and Yogyakarta.

In 2027, the E5 mandate will expand to Bali, while the blend is scheduled to increase to E10 between 2028 and 2030. The later phase will broaden coverage beyond Java to include Bali and Lampung.

Editing by Reiner Simanjuntak