As per reports, the Ministry of Energy and Mineral Resources (ESDM) has announced that Indonesia is likely to begin implementing a mandatory five percent ethanol-blended gasoline (E5) programme from July 2026 in selected regions, including Jakarta, West Java, Central Java, East Java, Yogyakarta, Bali, and Lampung.
• The government is expected to issue further regulatory guidance regarding volume allocation and implementation arrangements through a ministerial decree.
• The E5 programme is likely to operate alongside the existing B50 biodiesel initiative.
• One of Indonesia’s state-owned integrated energy companies has reportedly conducted market testing of E5 fuel products and established distribution infrastructure at 179 locations, with plans to further expand the network before implementation.
• Authorities are also finalizing regulatory matters related to excise provisions and licensing requirements for biofuel operations ahead of the rollout.
