Pertamina NRE eyes multi feedstock strategy to support E10 rollout
Thursday, February 26 2026 - 09:05 AM WIB
Pertamina New & Renewable Energy, the renewable sub-holding of state oil, gas company PT Pertamina (Persero), plans to adopt a multi feedstock and multi region strategy to accelerate bioethanol development and support Indonesia’s targeted E10 gasoline blending mandate, its chief executive said as quoted by media.
President director John Anis said the company would diversify feedstock sources beyond sugarcane and cassava to include sorghum and palm sugar from sugar palm trees, citing supply security concerns.
He said palm sugar holds significant potential for bioethanol development and could play a role similar to palm oil in biodiesel blending in the future.
On a regional approach, Anis said Indonesia’s diverse agricultural base allows bioethanol production to be tailored to local feedstock availability, including corn, sago, sweet potato and agricultural waste, helping reduce production costs and support more balanced regional development.
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Indonesia aims to implement a 10 percent ethanol blending mandate in gasoline by 2027. Anis said the policy could lift bioethanol demand to around 5 million kilolitres by 2029, compared with current production of roughly 63,000 kilolitres, or about 1 percent of projected needs.
Given the supply gap, he said the government could consider phased implementation, such as starting in Java and Bali or in regions with sufficient feedstock before expanding nationwide.
Anis said Pertamina NRE is committed to leading domestic bioethanol development but requires policy support across the supply chain, including upstream measures such as domestic market and price obligations, export controls, incentives for feedstock diversification and land expansion.
He added that midstream support is needed through fiscal incentives for ethanol plants, logistics improvements, simplified permitting and adjustments to ethanol pricing, while downstream measures should include mandatory blending rules for all fuel distributors and fiscal incentives for bioethanol use.
The strategy is part of broader efforts to expand renewable fuel supply and reduce reliance on fossil fuels in Indonesia’s transport sector.
Editing by Alexander Ginting