Ministry of Agriculture to tighten ethanol import controls to safeguard domestic industry
Saturday, September 20 2025 - 08:53 AM WIB
The government will reintroduce tighter controls on ethanol imports to protect domestic producers, following a directive issued by President Prabowo Subianto, Agriculture Minister Andi Amran Sulaiman announced on Friday, September 19.
Speaking at a press conference in Jakarta, Amran said the policy will be formalized through a forthcoming Trade Ministry regulation.
"Indonesia will only import ethanol if there is insufficient domestic supply. If local production is adequate, importation will be halted," said Amran.
The decision follows industry backlash over Trade Ministry Regulation No. 16/2025, which removed the requirement for import approvals for ethanol—classified under fuel products—allowing open access for foreign ethanol imports. The deregulation drew criticism from domestic sugarcane farmers and ethanol producers, who argued that it would undermine local competitiveness and allow an influx of cheaper imports.
Amran confirmed that discussions have been held with Trade Minister Zulkifli Hasan and the relevant coordinating ministers. He added that the new regulation could be issued as early as this weekend or by early next week.
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"It could be released today, or by Monday or Tuesday at the latest," he said.
The Indonesian Association of Spirit and Ethanol Producers (APSENDO) had earlier warned that the removal of import restrictions could significantly affect foreign exchange earnings, which currently exceed US$150 million annually from ethanol exports. APSENDO Chairman Izmirta Rachman cautioned in May that without proper safeguards, the policy shift could deliver a serious blow to an industry that has invested heavily and contributes to the national economy.
The government has not yet clarified whether the upcoming measure will revise the existing regulation or be issued as a separate ministerial decree.
Ethanol is used in Indonesia as both an industrial input and a biofuel blend under the country’s renewable energy program. Most domestic ethanol is produced from sugarcane and cassava. The government aims to increase the share of renewables in its energy mix by 2030.
Editing by Reiner Simanjuntak