Indonesia has doubled its 2028 bioethanol blending target from 10% to 20% as part of efforts to reduce oil imports and strengthen energy security (The Business Times, 17/09/2026). According to ANTARA News, the government is preparing 2 million hectares of sugar cane plantations across Java, Sumatra, Kalimantan and Papua to supply domestically produced ethanol. Sovereign wealth fund Danantara is responsible for developing ethanol-processing facilities, while the Agriculture Ministry is preparing a production strategy and securing land.
Indonesia currently operates a limited E5 programme, while national ethanol production is projected at 225 million litres in 2026, only 15% above its level nearly a decade earlier. Sugar cane was selected as the most viable feedstock after authorities also assessed corn and cassava.
The programme follows Indonesia’s increase of its mandatory palm-based biodiesel blend to 50% in July 2026. The authorities plan road tests of higher ethanol blends in December 2026 and ultimately target an E50 blend.
The expansion requires substantial new production despite Indonesia remaining the world’s second-largest sugar importer. The country is expected to import 4.2 Mt of sugar in 2026-2027, compared with domestic output of 2.5 Mt.
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