Indonesia is targeting the implementation of a 20% ethanol fuel blend (E20) by 2029 to strengthen national energy security.

"We expect to implement the 20 percent ethanol blend by 2029," Elen Setiadi, Deputy for Energy and Mineral Resources Coordination at the Coordinating Ministry for Economic Affairs, said during the MINDialogue event in Jakarta on August 12th.

He said the current bioethanol blending mandate for domestic petrol is 5% (E5). To meet the expanded E20 mandate, the government plans to increase ethanol feedstock production using domestic agricultural commodities such as sugarcane and cassava. A key source of molasses for the programme is expected to come from newly developed food estate projects, including large-scale agricultural developments in Papua.

Elen emphasised that developing an energy ecosystem is essential to accelerating national industrialisation and supporting the sustainability of the industrial sector.

"The President's directive under the Asta Cita programme is clear: energy security is a crucial foundation, followed by industrial downstreaming," he said.

Addressing global geopolitical developments, particularly the ongoing conflicts in the Middle East, he said international volatility highlighted the need for Indonesia to strengthen the management of its natural resources and reduce its energy vulnerabilities.

Elen cited the national Biodiesel 50 (B50) programme as an example of efforts to strengthen energy security, noting that the initiative has reduced Indonesia's dependence on imported diesel fuel.

Alongside long-term renewable energy programmes, the government remains committed to maintaining energy affordability through subsidised fuels, including diesel and Pertalite.

"The President has guaranteed that the prices of subsidised fuels, both diesel and Pertalite, will remain at their current levels until the end of the year," he said.