Indonesia plans to expand sugarcane plantations to support its E20 programme, which requires petrol to contain at least 20 per cent plant-based bioethanol. The programme is intended to increase biofuel use and reduce reliance on imported fuel.

Coordinating Minister for Food Affairs Zulkifli Hasan said the government expects to achieve the E20 target within the next five years, citing Indonesia's previous implementation of a 50 per cent biodiesel blend, known as B50, as an indication that biofuel use can be expanded.

Speaking at the 2026 Indonesia International Sustainability Forum in Jakarta, Hasan said the government would need to expand plantation areas because existing sugarcane supplies are insufficient to meet the feedstock requirements for E20.

"Yes, the required plantations will be expanded," he told reporters on the sidelines of the forum.

Hasan said the government is also considering other crops, including cassava, as feedstock for bioethanol production. However, sugarcane has been identified as the preferred feedstock because of its existing land footprint, with the government prioritising the crop over corn and cassava for the programme.

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

During a limited meeting at the Presidential Palace in Jakarta, recently, President Prabowo Subianto instructed Agriculture Minister Andi Amran Sulaiman to prepare 2 million hectares of sugarcane plantations within two years to support the implementation of the E20 policy. The government has also described the plan as dedicating 2 million hectares of existing sugarcane plantations to bioethanol production.

Prabowo also tasked the state-owned Danantara Investment Management Agency with taking the necessary steps to prepare the domestic industrial sector for the biofuel initiative.

Energy and Mineral Resources Minister Bahlil Lahadalia said recently that Indonesia ultimately aims to move beyond E20 towards an E50 blend, while ensuring that the programme does not depend on imported feedstock. The objective is to increase domestic energy supply and reduce dependence on imported fuel.

"We cannot afford to roll out E10, E20, or E50 while procuring ethanol from abroad," Bahlil said, adding that importing feedstock would conflict with the country's self-sufficiency policy.

The minister said the government intends to maximise domestically sourced feedstock for the programme. He added that achieving E50 would help Indonesia reach its target of no longer importing finished petrol products.

The biofuel programme forms part of Indonesia's energy transition and green economic growth strategy. Hasan said renewable energy investment could reduce reliance on the fossil fuel industry while creating employment opportunities. He also said that biofuel development must be balanced with food security and environmental protection.

Alongside the biofuel initiative, the government is developing a carbon market to attract international financing for its green economic plans. Under Presidential Regulation Number 110 of 2025, Indonesia's carbon pricing framework includes carbon trading, carbon taxes and results-based payments.

The expansion of domestic bioethanol production is intended to support the E20 programme while reducing dependence on imported fuel and contributing to Indonesia's plans for increased domestic energy production and lower carbon emissions.