Indonesia: Biofuels Annual

In early March 2026, Indonesia unveiled a new biofuel roadmap that phases in a 5 percent bioethanol blend (E5) for non-public service obligation (PSO) or non-subsidized gasoline, beginning with a geographic rollout across Java Island in 2026 to 2027 and expanding nationwide to a 10 percent blend (E10) by 2028. Rising global energy prices led the Government of Indonesia (GOI) to tighten controls on subsidized-fuel consumption while keeping retail prices for higher octane (RON 90) gasoline and subsidized diesel unchanged. This approach shielded consumers' purchasing power from the impact of global price increases. Against this backdrop, the GOI accelerated its biodiesel blending mandate raising it from a 40 percent biodiesel blend (B40) to a 50 percent biodiesel blend (B50) in July 2026, ahead of the new roadmap's original timeline and revising the fuel allocation upward.