US industry group hails trade pact easing ethanol exports to Indonesia

The Renewable Fuels Association (RFA) has welcomed a new trade agreement between the United States and Indonesia that is expected to facilitate greater U.S. ethanol exports to the Southeast Asian country.

In a statement, the association thanked U.S. President Donald Trump and U.S. Trade Representative Jamieson Greer for securing provisions that include ethanol market access.

RFA President and CEO Geoff Cooper said the agreement comes at a time of record U.S. ethanol exports and could open a significant new market for low-cost, low-carbon fuel.

 “Indonesia has long been a priority market for U.S. ethanol, with potential demand of roughly 1 billion gallons if 10-percent ethanol blends are used nationwide,” Cooper said. He added that the association would continue working with Indonesian officials and industry stakeholders to help implement import policies that prioritize domestic production while allowing U.S. ethanol to supplement supply gaps.

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Under Article 2.23 of the agreement, Indonesia is prohibited from adopting or maintaining measures that prevent the import of U.S. ethanol. The country has also committed to implementing a policy to supply transportation fuels blended with up to 5% ethanol (E5) by 2028 and up to 10% ethanol (E10) by 2030.

The agreement further states that Indonesia will endeavor to implement a 20% ethanol blend (E20), subject to sufficient supply availability and supporting infrastructure readiness.

Separately, the RFA released its annual U.S. Ethanol Trade Statistical Summary report on the same day, showing that U.S. ethanol exports reached a record 2.18 billion gallons in 2025, shipped to more than 80 countries worldwide.

The association said the new trade framework could strengthen bilateral cooperation in clean energy and expand access to more affordable transportation fuels in Indonesia.

Editing by Reiner Simanjuntak