The Ministry of Energy and Mineral Resources (ESDM) is promoting the development of bioethanol biofuels (BBN) to reduce carbon emissions. The idea of providing incentives for bioethanol-fueled vehicles has emerged as part of the national renewable energy strategy.
Incentives can be given to producers who build the bioethanol ecosystem from upstream to downstream, similar to the battery-based electric vehicle industry. Hyundai’s large investment in electric vehicles is cited as a reference for the bioethanol industry to receive similar incentives.
Currently, bioethanol is used through Pertamax Green 95 (E5) at several gas stations in Jakarta and Surabaya. The target of 20% ethanol blend (E20), which should be achieved by 2025, is still far off, as it is currently only at the E5 stage.
Only two out of 13 bioehanol industries in Indonesia meet fuel grade standards, while the rest still produce food grade bioethanol. The government needs to accelerate the development of the bioethanol industry with supporting policies.
Bioethanol has the potential to become a major player in Indonesia’s clean energy transition. Support for the bioethanol ecosystem from the government, producers, and society is crutial to the success of this program and achieving the goal of net-zero emissions by 2060.
Source: Firman Hidranto (2024), ‘Menyongsong Masa Depan Cerah Kendaraan Bioetanol’, Indonesia.go.id, 3 October Available at: