October 28, 2025 | 08:05 pm
TEMPO.CO, Jakarta – Indonesia's Minister of Energy and Mineral Resources Bahlil Lahadalia dismissed claims that ethanol is unsuitable for use as a fuel additive, saying that many countries have already adopted ethanol-blended fuels successfully.
“In India, they already use E30; in the United States, it’s E20; and in Thailand, E20 as well,” Bahlil said during the Sarasehan 100 Ekonom Indonesia forum at Menara Bank Mega, Jakarta, on Tuesday, October 28, 2025.
The Indonesian government plans to make the use of gasoline containing 10 percent ethanol, known as E10, mandatory by 2027.
According to Bahlil, Indonesia’s annual fuel consumption stands at around 42 million tons, with 20 to 30 million tons imported each year. The E10 policy, he said, is part of the government’s effort to reduce dependency on fuel imports.
Bahlil, who also chairs the Golkar Party, added that introducing E10 could generate new jobs and boost economic growth in local regions.
Debate Over Ethanol Content in Fuel
The use of ethanol as a fuel blend has drawn public attention after PT Vivo Energy Indonesia and APR, a joint venture between BP and AKR, canceled plans to purchase base fuel from Pertamina.
The companies cited the ethanol content in Pertamina’s imported base fuel as the reason for the cancellation.
Executive Director of the Institute for Essential Services Reform (IESR), Fabby Tumiwa, said that mixing ethanol with fuel could reduce its energy content.
“Fuel consumption could increase to cover the same distance compared to pure gasoline,” Fabby said via text message on Sunday, October 5, 2025.
Fabby estimated that blending 10 percent ethanol in gasoline could lower fuel economy by around 3 to 4 percent.
He also warned that ethanol’s water-absorbing nature could increase the risk of corrosion in vehicle engines.
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