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Indonesia and Brazil to boost ethanol biofuels, targeting E10 gasoline by 2027 using local crops.
Indonesia has signed a cooperation agreement with Brazil to develop ethanol-based biofuels, aiming to implement a mandatory E10 gasoline blend by 2027, with potential expansion to E20.
The move, approved by President Prabowo Subianto and led by Energy Minister Bahlil Lahadalia, seeks to reduce fuel imports, cut emissions, and boost rural economies by producing 1.4 million kiloliters of ethanol annually from local crops like cassava, corn, and sugarcane.
The initiative draws on Brazil’s experience with high ethanol blends and flexible-fuel vehicles, with Indonesia sending teams to study Brazil’s model and inviting Brazilian investment.
The government will offer tax holidays and guaranteed market access to attract private sector participation.
Indonesia y Brasil para impulsar los biocombustibles de etanol, apuntando a la gasolina E10 para el año 2027 utilizando cultivos locales.