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2026-09-17 14:10:09
[Indonesia plans to double its bioethanol blending target to 20% by 2028 to accelerate fuel import reduction] (1) Indonesia has doubled its bioethanol blending target to 20% by 2028 to accelerate President Prabowo's efforts to reduce fuel import dependence. (2) This move will continue Indonesia's aggressive push for biofuels. Previously, the country increased the mandatory blending ratio of palm-based biodiesel to 50% in July. (3) Global demand for crop-based fuels is rising as governments seek to support agriculture, reduce transportation emissions, and improve energy security; this trend has been further fueled by the disruption of oil exports through the Strait of Hormuz this year. (4) The planned expansion will require a significant increase in ethanol supply. Indonesia currently implements a limited E5 program, which blends 5% bioethanol into gasoline; USDA data shows that production this year is expected to increase by only 15% compared to nearly a decade ago, to 225 million liters. (5) Most of the new fuel is expected to come from sugarcane, despite Indonesia being the world's second-largest sugar importer. According to data from the U.S. Department of Agriculture, the country is projected to import 4.2 million tons of sugar in 2026-27, while domestic production is estimated at 2.5 million tons.
