Pertamina Seeks Excise Exemption for Ethanol Import to Boost Biofuel Rollout

by Ruth Dea Juwita (The Jakarta Post) Existing bioethanol supplies can cover only about 3 percent of national demand for biofuel applications, according to the Investment and Downstream Ministry data. READ MORE

Excerpt from Antara: Pertamina Patra Niaga is preparing infrastructure to support the government’s mandatory bioethanol policy, or ethanol-blended gasoline, through the distribution of Pertamax Green 95, the company’s Retail Marketing Director Eko Ricky Susanto said.

"So, this (Pertamax Green 95) is part of Pertamina Patra Niaga’s preparations to use ethanol in its gasoline products," Susanto said during a media gathering here on Friday.

Currently, the distribution of Pertamax Green 95 is concentrated on Java Island.

Susanto said the government is currently formulating a policy on the use of bioethanol.

He estimated that within the next one to two years, all gasoline products would contain ethanol.

As the construction of infrastructure needed to implement the policy will take considerable time, Pertamina is preparing for the transition through Pertamax Green 95. Susanto said the product is part of the transition toward ethanol-blended gasoline.

"This is also part of the energy transition through the use of ethanol-based biofuels, particularly for gasoline," he said.

The government is targeting the implementation of a 10-percent ethanol blend in gasoline (E10) starting in 2027 as an initial stage before moving to E20.

Energy and Mineral Resources Minister Bahlil Lahadalia said the government had been studying the mandatory ethanol policy since 2025.

The study is now nearing completion and will serve as the basis for preparing a roadmap for E20 implementation, which is targeted to be carried out gradually in 2028-2029.

The minister said the policy of blending ethanol into gasoline aims to reduce Indonesia’s dependence on fuel imports, particularly gasoline. READ MORE

Excerpt from VOI.ID: Director of Retail Marketing at PT Pertamina Patra Niaga, Eko Ricky Susanto, said this step is intended to accelerate the national energy transition and maintain the economics of vegetable-based fuel products (BBM).

"Together with the Ministry of Energy and Mineral Resources and other institutions, we are asking for support related to tax-free for fuel-based ethanol," said Eko at the Yogyakarta Rewulu Fuel Terminal, Friday, September 11.

Eko said that currently the tax regulation still equates the treatment of ethanol for the needs of the food and beverage industry with energy needs.

"The ethanol that is currently taxed is only for food, especially for drinks and others. However, because this is for the interests of energy transition and energy shifting, we have submitted to the ministry to be supported in terms of tax-free, and it is currently being processed," he explained.

Eko further added that the submission of this tax exemption is an important factor in the midst of the government's preparations to formulate policies so that all ethanol-based gasoline (gasoline) products in the range of 1 to 2 years in the future.

"The plan is that the government is currently working on its policy and God willing, maybe in the next 1-2 years all gasoline products will be based on ethanol. So this is also Pertamina Patra Niaga's readiness to be able to use ethanol in its gasoline products," said Eko.

Meanwhile, from the internal side, Eko ensured that Pertamina Patra Niaga had prepared infrastructure readiness, ranging from facilities and facilities at terminals, storage tanks, to blending systems that are appropriate for handling the characteristics of ethanol-based fuels.

"So the priority is still Java because the production base is also ethanol in Mojokerto. Even though there are plans to develop 3 to 4 new ethanol plants that will later be able to support the ecosystem of ethanol," he said. READ MORE

Excerpt from Antara: Indonesia took a major step toward strengthening its energy security and accelerating its green transition by launching a new bioethanol development center in Tegineneng, Pesawaran Regency, Lampung.

The initiative, designed to integrate agriculture, technology, and renewable energy investment, supports President Prabowo Subianto's Asta Cita national agenda by tapping into local crops, specifically sorghum, to reduce the country's reliance on imported fossil fuels.

"Today, we are discussing energy security, downstreaming, energy transition or the energy mix, and economic resilience. In the context of bioethanol or biodiesel, our country holds immense potential," Deputy Minister of Investment and Downstreaming Todotua Pasaribu said in a statement on Monday (September 14, 2026).

According to Todotua, a key factor driving the development is the current national gasoline consumption of 36 million kiloliters per year, making the development of ethanol essential.

Todotua noted that research and insights from the Japanese automotive industry had identified sorghum as a highly viable and cost-effective feedstock for bioethanol production.

The Lampung center will explore both first-generation (1G) and second-generation (2G) sorghum processing technologies, alongside the downstreaming of cassava and corn.

The project was initiated with three simultaneous milestones: the signing of a memorandum of understanding (MoU) among key partners, a symbolic sorghum planting ceremony, and the start of work on an initial 10-hectare plot, part of a planned 20-hectare complex in Masgar, Tegineneng.

With a targeted local capacity of 430,000 kiloliters, the project aims to establish an integrated supply chain linking local farmers to state energy assets and global industrial players.

Key strategies include reactivating existing processing assets, partnering with state-owned plantation company PTPN, and converting traditional plants for biofuel production.

The multi-stakeholder coalition behind the bioethanol ecosystem includes the Ministry of Investment and Downstreaming, the Lampung Provincial Government, PT Pertamina New and Renewable Energy (PNRE), PT Toyota Motor Manufacturing Indonesia (TMMIN) and PT Toyota Tsusho Indonesia (TTI). READ MORE