JAKARTA – Indonesian President Prabowo Subianto has ordered the Ministry of Energy and Mineral Resources (ESDM) to immediately prepare for the development of a fuel blend containing 50 percent bioethanol (E50).

This strategic directive was issued during the first plenary session of the National Energy Council (DEN) of 2026 at the Merdeka Palace in Jakarta, aiming to anticipate global geopolitical dynamics and strengthen national energy security.

Minister of Energy and Mineral Resources Bahlil Lahadalia explained that the new move is based on the success of the 50 percent biodiesel (B50) program based on crude palm oil (CPO) and methanol which successfully eliminated all imports of CN-48 grade diesel. A similar scheme is now being replicated for gasoline, given that national consumption levels for both fuels are comparable.

“Our annual diesel consumption is approximately 39 million kiloliters, and gasoline consumption is similar, hovering around 39 to 40 million. President has just ordered us to immediately formulate steps to develop the E50,” Bahlil stated firmly following the DEN plenary session on Friday (18/09/2026).

Acceleration strategy and energy resilience

The government said that current national fuel reserves are sufficient for approximately 18 to 20 days. To implement E50 and catch up with other nations such as India, which has adopted E20, and Brazil, which uses E100 the government is preparing several key pillars:

• Construction of Bioethanol Plants: Indonesia currently has only one active bioethanol plant. President Prabowo has decided to launch a massive initiative to build at least 30 to 50 new bioethanol plants.
• Boosting Upstream Oil and Gas Production:

Accelerating exploration in new oil blocks and basins, alongside the application of technological interventions for aging wells.

• Regulation of 45,000 Artisanal Wells:

Implementing strict supervision to ensure that tens of thousands of artisanal oil wells are managed professionally, preventing leaks or the illegal sale of output to external parties.

Through a combination of B50 and E50 implementation and the optimization of the upstream sector, the government is optimistic about reducing reliance on imported fuel while simultaneously securing national energy sovereignty. (*)

Sawitindonesia.com. Susul Keberhasilan B50, Pemerintah Resmi Garap Bioetanol E50 demi Ketahanan Energi. https://sawitindonesia.com/susul-keberhasilan-b50-pemerintah-resmi-garap-bioetanol-e50-demi-ketahanan-energi. 18 September 2026