Minister Bahlil pushes E20 bioethanol rollout to cut gasoline imports

Jakarta (ANTARA) - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia said the government is preparing to roll out the E20 bioethanol program as part of efforts to reduce fuel imports.

"We must do a conversion in order to reduce imports. If B50 can meet our needs, why not with gasoline?" he said during his speech at the 2026 Indef Mid-Year Review National Seminar on Thursday.

According to him, current gasoline demand reaches 40 million kiloliters, while domestic production reaches 20 million kiloliters, leaving a 20 million kiloliters gap.

Bahlil said that although domestic oil lifting has yet to meet national demand, gasoline imports must be kept to a minimum to avoid placing additional strain on the state budget.

Therefore, he emphasized that the implementation of Bioethanol E20 must be carried out in 2028-2029, as B50 is now available and will reduce imports.

"From 20 million kiloliters of gasoline, along with the implementation of E20, that leaves 16 million. We just need to push for increased lifting to produce gasoline," he remarked.

He also informed that several countries are already using bioethanol to reduce their dependence on oil.

"The United States, Brazil, and several other countries have implemented it. The goal is to reduce imports and prevent our foreign exchange from flowing out," he added.

Previously, the minister said the government is currently working to increase crude oil production, or domestic lifting, to reduce imports.

"There are several approaches taken to increase oil lifting," he noted.

His office is seeking to increase oil lifting through several means, such as using technology and reviving the stalled Plan of Development (PoD).

In order to increase production, he mentioned that exploration will also be resumed to increase crude oil reserves.

"We cannot avoid exploration. We have around 120 potential wells that are currently in exploration tenders," the minister said.

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Translator: Khaerul Izan, Resinta Sulistiyandari

Editor: Azis Kurmala

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