Jakarta, INTI - PT Pertamina (Persero) is accelerating the development of domestically sourced bioethanol as part of Indonesia’s efforts to strengthen national energy independence. This initiative aligns with the government’s target to implement the E20 bioethanol-blended fuel by 2028.
The commitment was formalized through the signing of three strategic Memorandums of Understanding (MoUs) between Pertamina New & Renewable Energy, PT Perkebunan Nusantara III (Persero), and PT Medco Energi Internasional Tbk through its subsidiary PT Medco Intidinamika, in Jakarta on Monday, April 27, 2026.
Cross-Sector Collaboration to Accelerate the Bioethanol Ecosystem
The agreements cover several strategic projects, including the revitalization of a multi-feedstock bioethanol plant in Lampung and the development of a new facility in Bone, South Sulawesi. The collaboration also extends to PT Sinergi Gula Nusantara to develop molasses-based bioethanol integrated with Indonesia’s sugar industry.
Director General of New, Renewable Energy and Energy Conservation (EBTKE) at the Ministry of Energy and Mineral Resources, Eniya Listiani Dewi, emphasized the urgency of accelerating bioethanol implementation to achieve the E20 target.
“Bioethanol implementation can no longer be delayed. The E20 target by 2028 requires a significant leap in both supply and infrastructure. Therefore, collaborations like today’s are key to ensuring production availability, offtaker certainty, and an integrated upstream-to-downstream ecosystem. The government is also simplifying regulations to enable faster industry progress,” she said.
This collaboration brings together cross-sector strengths, with PTPN III responsible for feedstock supply from plantation commodities, Medco strengthening industrial and infrastructure development, and Pertamina through PNRE driving downstream processing and utilization of bioethanol as clean energy. The synergy is designed to build a fully integrated national ecosystem from upstream to downstream.
Driving Import Substitution and Energy Independence
Director of Transformation and Business Sustainability at Pertamina, Agung Wicaksono, stated that the collaboration is a concrete step toward strengthening Indonesia’s energy resilience amid global uncertainty.
“In today’s geopolitically uncertain environment, the best energy sources are those derived domestically. This collaboration opens the path for renewable energy utilization based on local potential. Through synergy within the Pertamina Group and plantation and strategic partners, we are confident that the bioethanol program will support import substitution and strengthen national energy independence,” he said.
Meanwhile, CEO of Pertamina NRE, John Anis, highlighted that bioethanol development is part of the strategic roadmap supporting Indonesia’s energy transition agenda.
Indonesia’s bioethanol requirement to achieve the E20 target by 2028 is estimated at 3 to 5 million kiloliters, requiring the development of multiple production facilities across regions using a multi-feedstock and multi-distribution approach tailored to local resources and regional potential.
Building an Integrated Upstream-to-Downstream Ecosystem
President Director of PTPN III, Denaldy Mulino Mauna, emphasized that the initiative aims to build an integrated bioethanol ecosystem across the entire value chain. He noted that the development will not only strengthen the energy sector but also deliver economic benefits to farmers through market certainty and to industries through stable supply.
“PTPN will ensure feedstock availability, while Pertamina drives energy downstreaming. This is not just a project, but a joint effort to build a more independent and sustainable energy future for Indonesia,” he said.
As part of its broader initiative, Pertamina has been continuously developing an integrated bioethanol ecosystem, including facilities in Glenmore (Banyuwangi), a joint plant with Toyota Tsusho in Lampung, an aren-based pilot project in Garut involving social forestry groups, and global collaboration and strategic investments in renewable energy.
Bioethanol development is a key strategic direction for Pertamina moving forward, with continued efforts to strengthen cross-sector collaboration to ensure readiness for implementation and deliver long-term value for the national economy.
As a leading energy transition company, Pertamina remains committed to supporting the Net Zero Emission 2060 target and advancing programs aligned with the Sustainable Development Goals (SDGs). All initiatives are implemented under Environmental, Social & Governance (ESG) principles across its business operations, in coordination with Danantara Indonesia.
Conclusion
The collaboration between PT Pertamina (Persero) and its strategic partners marks a significant step toward strengthening Indonesia’s bioethanol ecosystem and advancing the E20 fuel target by 2028. By integrating upstream feedstock supply, industrial development, and downstream energy processing, this initiative reinforces national energy independence, supports the energy transition agenda, and promotes a more sustainable and resilient energy future for Indonesia.
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