Prabowo Orders E50 Fuel Roadmap After B50 Program Success

President Prabowo Subianto has ordered the Energy and Mineral Resources Ministry to prepare steps for developing E50 fuel. (Red/Pwt)

PEWARTA.CO.ID— President Prabowo Subianto has ordered Energy and Mineral Resources Minister Bahlil Lahadalia to prepare steps for developing fuel blended with 50 percent bioethanol, known as E50.

The directive was delivered during a plenary session of the National Energy Council at Merdeka Palace in Jakarta on September 17, 2026, with the government looking to strengthen domestic fuel availability.

Bahlil said the government was instructed to study the experience of the B50 biodiesel program as a reference for developing E50.

“For the long term, we are studying the success of B50. Based on that experience, the President has instructed us to immediately prepare similar steps to develop E50,” Bahlil said, as quoted by CNBC Indonesia on September 22, 2026.

The planned E50 development is being linked to the government's effort to increase the availability of fuel from domestic sources. Bahlil said national fuel demand remains high, with diesel consumption reaching about 39 million kiloliters a year and gasoline consumption at roughly 39 million to 40 million kiloliters.

“We know that our annual fuel consumption is 39 million KL for diesel and almost 39 million to 40 million for gasoline. This is part of the effort to encourage domestic fuel availability,” Bahlil said.

Government targets higher domestic oil production

Alongside the E50 plan, the government is preparing measures to increase national oil output through new exploration.

Exploration will focus on oil and gas basins and blocks that still have production potential, while around 45,000 mature wells are also being considered for optimization with technological support.

The government plans to manage the mature wells professionally so their production potential can be utilized while preventing violations and illegal oil sales around production areas.

E50 included in downstream energy strategy

The E50 initiative is also being positioned as part of the government's downstream energy development plans, with greater use of domestic energy resources intended to support national fuel needs.

At the institutional level, the government is also preparing a plan to establish a Special Oil and Gas Business Entity, or BUK Migas, as part of efforts to strengthen the oil and gas sector.

The proposed institution would be established through a revision of the Oil and Gas Law and, under the concept presented by the government, would operate under the President and report directly to the President.

The E50 plan therefore forms part of a broader package of energy policies that also includes new oil and gas exploration, optimization of mature wells, and changes to the institutional framework of the oil and gas sector.