Energy and Mineral Resources Minister Bahlil Lahadalia plans to expedite the mandatory blending of bioethanol into fuel as a response to global oil prices reaching US$118 per barrel. The policy aims to reduce import dependency and secure national energy supplies amid Middle East geopolitical tensions.
Jakarta – Energy and Mineral Resources Minister Bahlil Lahadalia stated he will accelerate the implementation of mandatory bioethanol blending into fuel, driven by the rise in global oil prices to US$118 per barrel. The statement was made by Bahlil at the Ministry of Energy and Mineral Resources office in Jakarta on Monday, March 9, 2026.
Previously, the government planned to introduce E20, a 20 percent ethanol blend in gasoline, starting in 2028 to reduce gasoline imports. However, with fossil oil prices exceeding US$100 per barrel, Bahlil considers ethanol blending more cost-effective. "Because if fossil oil prices can exceed 100 US dollars per barrel, then it will be cheaper if we blend (mix)," said Bahlil.
The policy is also influenced by geopolitical dynamics in the Middle East affecting fossil fuel-dependent countries. "We are making it mandatory for gasoline and it is cleaner," he added. In addition to E20, Bahlil plans to speed up 50 percent biodiesel or B50, consisting of 50 percent diesel and 50 percent palm oil-based vegetable fuel. Currently, Indonesia implements mandatory B40, while B50 is still under review.
These steps are the government's efforts to find the best alternatives to secure national energy supplies. "So, there are several steps that we will take. Of course, with the existing conditions, the government is thinking of finding the best alternatives to maintain the national energy supply," said Bahlil.
