Indonesia to Implement E10 Fuel Blend by 2027, Boosting Renewable Energy
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PublishedDec 6
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Indonesia to Implement E10 Fuel Blend by 2027, Boosting Renewable Energy

AnalisaHub Editorial·December 6, 2025
Executive Summary
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Executive Summary

Key insights and market outlook

Indonesia plans to implement E10 fuel blend by 2027, mixing 10% ethanol with gasoline, as part of its strategy to reduce carbon emissions and dependence on fossil fuel imports. The government has approved the mandatory use of E10, which is expected to boost the domestic bioethanol industry and create new economic opportunities. Experts confirm that E10 is safe for modern vehicles and will help reduce emissions.

Full Analysis
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Deep Dive Analysis

Indonesia to Implement E10 Fuel Blend by 2027

Government Approves Mandatory E10 Fuel

Indonesia is set to implement a mandatory E10 fuel blend by 2027, marking a significant step in its transition to renewable energy. The decision, approved by President Prabowo Subianto, involves mixing 10% ethanol with gasoline, aiming to reduce the country's reliance on fossil fuels and lower carbon emissions. This move is part of a broader strategy to enhance energy independence and promote the use of biofuels.

Boosting Domestic Bioethanol Industry

The implementation of E10 is expected to provide a significant boost to Indonesia's bioethanol industry. The government plans to utilize local resources such as sugarcane, cassava, corn, and palm sap to produce ethanol. This initiative is likely to create new economic opportunities, particularly for farmers and local communities involved in the production of these crops.

Expert Opinions on E10 Safety and Benefits

Experts in the field of energy and automotive engineering have confirmed that E10 is safe for use in modern vehicles. Prof. Tri Yuswidjajanto from ITB stated that the use of ethanol-blended fuel is a common practice globally, with countries like the U.S. and Brazil successfully implementing higher ethanol concentrations. The slight reduction in energy content due to ethanol mixing is minimal and does not significantly affect vehicle performance.

Moreover, the use of ethanol in fuel enhances combustion efficiency due to its high oxygen content, leading to lower emissions of carbon monoxide and unburned hydrocarbons. This makes E10 not only a viable but also an environmentally friendly alternative to conventional gasoline.

Infrastructure and Implementation Plans

The Minister of Energy and Mineral Resources, Bahlil Lahadalia, mentioned that the implementation of E10 is currently pending the preparation of ethanol production facilities. Pertamina, Indonesia's state-owned oil company, is working on developing bioethanol production using palm sap in West Java. This project is part of a comprehensive approach to integrate renewable energy solutions from upstream to downstream.

The success of Indonesia's biodiesel program, which has progressed from B10 to B35, serves as a foundation for the E10 initiative. The government's commitment to renewable energy and reducing fossil fuel dependency is evident in its strategic planning and policy support for biofuel development.

Economic and Environmental Impact

The introduction of E10 is expected to have a positive impact on the economy by creating new job opportunities and increasing the value of local agricultural products. Environmentally, the shift to E10 will contribute to a reduction in greenhouse gas emissions and help Indonesia achieve its climate goals.

In conclusion, the implementation of E10 in Indonesia represents a significant step towards achieving energy independence and reducing environmental impact. With proper planning and execution, this initiative is poised to bring substantial benefits to both the economy and the environment.

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Story Info

Published
1 month ago
Read Time
16 min
Sources
1 verified
Related Stocks
PERTAMINA

Topics Covered

Energi TerbarukanBioetanolBahan Bakar Ramah LingkunganIndustri Biofuel

Key Events

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E10 Fuel Implementation Plan

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Bioethanol Industry Boost

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Renewable Energy Policy

Timeline from 1 verified sources