Indonesia Targets E20 Fuel Using Sugarcane as Feedstock

RRI.CO.ID, Jakarta - The Indonesian government is targeting the production of fuel blended with 20 percent ethanol, known as E20, within the next two years. The target was discussed during a limited meeting chaired by President Prabowo Subianto at the Merdeka Palace in Jakarta on Wednesday, September 16, 2026.

Coordinating Minister for Food Affairs, Zulkifli Hasan said the government is preparing several measures to meet the target, including providing land for ethanol feedstock and developing ethanol processing facilities. The government plans to prepare around two million hectares of land across several regions of Indonesia.

“The limited meeting was chaired directly by the President. We discussed the goal of producing at least E20 within the next two years. Therefore, the Agriculture Minister was asked to prepare a plan, including the land and other requirements,” Zulkifli Hasan said after the meeting.

According to Zulkifli, sugarcane is considered the most feasible feedstock for ethanol production. The land being prepared is spread across several regions, including Java, Sumatra, Kalimantan, and Papua. Meanwhile, Danantara will be responsible for developing the ethanol processing industry.

Zulkifli explained that, based on the discussion, crude oil could be blended with ethanol to achieve an E20 composition within the next two years. He said land availability remains one of the main challenges in securing the feedstock needed for ethanol production.

“After our assessment and discussions, it is possible that within the next two years, our crude oil can be blended with E20. The main bottleneck is the availability of land. However, after today's discussion, land could be secured in Kalimantan, Sumatra, Java, and Papua,” he explained.

Zulkifli emphasized that the ethanol needed for the initial implementation of E20 will be supplied through domestic production. The government also plans to gradually expand the use of ethanol, with a long-term target of increasing the ethanol blend to E50.

Sugarcane was selected as the feedstock after the government considered other commodities, including corn and cassava. According to Zulkifli, both commodities face challenges in being developed on a large scale, particularly in terms of harvesting processes and mechanization.