Indonesia to Implement E10 Fuel by 2027 to Reduce Fuel Consumption

New Energy Policy Aims to Cut Import Dependence

Indonesia is set to introduce E10 fuel, a gasoline blend containing 10% ethanol, by 2027. Energy Minister Bahlil Lahadalia revealed that this initiative is expected to reduce the country's fuel consumption by 4.2 million kiloliters annually. The plan is part of Indonesia's broader strategy to decrease its reliance on imported fuel and optimize domestic energy resources.

Calculation Basis and Potential Impact

The estimated reduction is based on Indonesia's current annual gasoline consumption of 40-42 million kiloliters. By incorporating ethanol into the fuel mix, the government aims to achieve significant savings in fuel imports. Bahlil emphasized that this move could lead to substantial cost savings, particularly on subsidized fuel.

Government's Energy Diversification Efforts

The introduction of E10 fuel is part of Indonesia's efforts to diversify its energy mix and reduce its vulnerability to fluctuations in global oil prices. The government has been exploring various alternatives to decrease the country's dependence on fossil fuels and promote the use of renewable energy sources.