Indonesia targets 2mn hectare plantation expansion for domestic E20 biofuel mandate

The Indonesian government plans to expand domestic sugarcane and cassava plantation areas to secure feedstock for its incoming E20 biofuel policy, which mandates a 20% bioethanol blend in commercial gasoline, Antara News reports.

Speaking on the sidelines of the Indonesia International Sustainability Forum in Jakarta on October 6, Coordinating Minister for Food Affairs Zulkifli Hasan confirmed that current domestic sugarcane supplies remain insufficient to meet blending requirements independently.

"E20 can be derived from sugarcane and cassava, among others," Hasan noted. "Should we aim for sugarcane, it is necessary to open new plantations because we are still lacking feedstock."

The agricultural expansion follows specific directives issued during a restricted cabinet meeting on September 16, where President Prabowo Subianto instructed Agriculture Minister Andi Amran Sulaiman to prepare two million hectares of sugarcane plantations within a two-year timeframe.

As part of the institutional rollout, President Prabowo tasked Indonesia's newly established sovereign wealth fund, Daya Anagata Nusantara (Danantara), with mobilising capital and structuring industrial capacity for the domestic bioethanol processing sector.

The E20 directive serves as an intermediate stepping stone toward higher blending ratios, according to Minister of Energy and Mineral Resources Bahlil Lahadalia.

Speaking on September 21, Lahadalia stated that Indonesia aims to progress toward an E50 standard without relying on imported bioethanol, framing the initiative as a key pillar of national energy sovereignty.

"We cannot afford to roll out E10, E20, or E50 while procuring ethanol from abroad," Lahadalia stressed. "If we can achieve the E50 standard, we will meet our target of no longer importing finished gasoline products."