Indonesia to Implement E5 Ethanol-Blended Gasoline and B50 Biodiesel Starting July 1
2026-05-22 15:48
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en.Wedoany.com Reported - Officials from Indonesia's Ministry of Energy announced that the country plans to implement ethanol-blended gasoline (E5) and increase the mandatory biodiesel blend rate to 50% (B50) starting July 1, aiming to promote energy self-sufficiency and accelerate the transition to clean fuels.

Eniya Listiani Dewi, Director General of Renewable Energy, stated during the Indonesian Petroleum Association (IPA) conference that E5 (a mixture of non-subsidized gasoline with at least 5% ethanol) will be mandated simultaneously with B50. The E5 mandate will first be implemented in several selected locations and rolled out nationwide within a few years. Eniya revealed that a ministerial decree on quota allocation will be issued, requiring local sourcing. Currently, only three companies are recognized as capable of producing approximately 26,000 kiloliters of ethanol blend.

Meanwhile, Indonesia will increase the mandatory blend rate for palm-based biodiesel from the current 40% to 50%, known as B50, starting July 1. B50 consists of a mixture of 50% palm oil-based biodiesel and 50% conventional diesel. The implementation of B50 is part of a broader government plan to mitigate risks from the war in Iran.

According to a ministerial decree issued by Indonesia's Ministry of Energy, E5 will be implemented on Java, the country's most populous island, during the 2026-2027 period, with the blend rate increasing to 10% by 2028.

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