Jakarta, INTI - The government is accelerating the development of bioethanol as a gasoline blend, or E20, to reduce dependence on energy imports amid escalating global geopolitical tensions.
Agriculture Minister Andi Amran Sulaiman stated that the bioethanol initiative is part of the President’s directive to accelerate downstream processing, particularly in the agriculture and energy sectors.
“First, for the agriculture sector, we need rapid downstream development of biofuels given the current heated geopolitical situation,” Amran said in a press release from Jakarta, as cited on the Ministry of Agriculture’s YouTube channel on Monday, March 30, 2026.
He explained that the government is pushing biofuel development because global instability requires Indonesia to take swift action to strengthen national energy security. This policy was planned even before the recent geopolitical turmoil, aiming to reduce the burden of energy imports.
Previously, the biodiesel program ran with B40, a blend of 40% palm oil and 60% fossil diesel, which reportedly helped curb diesel imports. The government plans to increase this blend to B50.
Agricultural Commodities Drive E20 Program
The next target is the E20 bioethanol program, which mixes gasoline with 20% ethanol. Ethanol feedstocks are expected to come from agricultural commodities such as corn, cassava, and sugarcane.
“E20—20% ethanol blend in gasoline. Where from? Corn, cassava, and sugarcane. All can grow in Indonesia,” Amran said.
The E20 program is intended as a strategic measure to reduce fuel imports while boosting agricultural value through downstream processing. The government aims for Indonesia to follow Brazil’s example, which has already implemented high-ethanol blends such as E27 to E37.
Amran also highlighted the government’s dual targets: food self-sufficiency and energy independence. For food, he claimed that Indonesia’s national rice stock has reached 4.3 million tons, the highest in history, and is expected to increase to 5 million tons next month.
“Last year, the maximum was 4.2 million tons. Today, 4.3 million tons. Next month, 5 million tons,” he said.
Conclusion
The E20 bioethanol initiative represents a strategic step for Indonesia to reduce reliance on imported fuel while enhancing the value of domestic agriculture. By leveraging local crops like corn, cassava, and sugarcane, the government aims to achieve both energy independence and sustainable agricultural development.
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