The Government of Indonesia has announced a mandate to blend 10% ethanol into petrol from 2026.

Coordinating Minister for Food, Zulkifli Hasan, stated that the policy will benefit farmers. Speaking in Tangerang, Banten, Hasan explained that the mandatory 10% ethanol blend will increase the price of cassava, one of the primary raw materials used to produce ethanol, to IDR 2,000 (US$ 0.12) per kg.

The government-set selling price for cassava currently stands at IDR 1,350 per kg. The new policy is expected to increase its value.

In addition to cassava, the price of sugarcane is also expected to rise.

Hasan further added that the programme uses raw materials including cassava, sugarcane, and corn.

Earlier, Energy and Mineral Resources Minister Bahlil Lahadalia stated that President Prabowo Subianto had approved the plan to mandate a 10% ethanol blend in petrol as part of efforts to reduce carbon emissions and dependence on fuel imports.

Lahadalia confirmed in Jakarta on October 7th, that the President had approved the plan for the 10% mandatory ethanol (E10) blend.

The minister stated that, in addition to reducing dependence on fuel imports, the E10 policy also aims to promote the use of cleaner petrol.

A member of Commission XII of the House of Representatives (DPR RI), Ratna Juwita Sari, stated that the E10 policy must not serve as a justification for large-scale ethanol imports.

She noted that the government must ensure domestic ethanol production capacity can meet national demand before the policy is implemented.