[Jakarta, 18 July 2023] In late July 2023, PT Pertamina plans to launch Pertamax Green 95, a fuel blend combining Pertamax gasoline with bioethanol derived from sugarcane molasses. MADANI Berkelanjutan views this policy as a step that could bring Indonesia closer to its energy transition and energy independence—provided it is followed by broader diversification of biofuel feedstocks.
Through its subsidiary PT Pertamina Patra Niaga, Pertamina will begin limited distribution of Pertamax Green 95 this July. The fuel consists of 95 percent Pertamax gasoline blended with 5 percent bioethanol. The bioethanol is produced from molasses, a by-product of sugar production.
“Indonesia’s sustainable energy mix still needs to be strengthened. Therefore, this innovation using sugarcane molasses can be seen as an important early step toward utilizing other sustainable fuel sources—especially those derived from residues and waste,” said Giorgio Budi Indrarto, Deputy Executive Director of MADANI Berkelanjutan, in response to the launch of Pertamax Green 95.
This is not the first time Pertamina has blended fossil fuels with biofuels. Since 2008, Pertamina has mixed diesel with palm oil–based biodiesel. The current blending mandate has reached 35 percent (B35), in line with the Ministry of Energy and Mineral Resources’ policy. To date, palm oil remains the only biofuel feedstock that receives a formal mandate and incentives from the government.
“Oil palm expansion still poses significant social and environmental risks. Therefore, while continuing to improve palm oil governance, the government must also optimize the use of diverse feedstocks in the development of second-generation biofuels derived from waste and residues. These alternative feedstocks include used cooking oil, corn cobs, sugarcane molasses—such as that used in Pertamax Green 95—agricultural residues, and other organic waste,” Giorgio Budi Indrarto explained.
He further emphasized that diversifying biofuel feedstocks aligns with Indonesia’s commitment to transition toward sustainable energy in order to reduce emissions. Under Indonesia’s Long-Term Strategy for Low Carbon and Climate Resilience (LTS-LCCR) 2050, biofuels are expected to contribute 46 percent of total energy demand in the transport sector by 2050.
“Achieving the LTS-LCCR 2050 target will require contributions from multiple feedstocks so Indonesia does not become overly dependent on palm oil alone. Excessive reliance on a single feedstock carries significant economic, social, and ecological risks,” Giorgio added.
Beyond supporting the energy transition, feedstock diversification also strengthens energy independence. “Diversifying biofuel feedstocks is a concrete effort to maximize domestic energy resources, which can in turn stimulate local economies across regions. Many parts of Indonesia have different—and largely untapped—biofuel feedstock potentials that should be developed,” he said.
In closing, Giorgio Budi Indrarto encouraged the public to choose more sustainable fuels. “By doing so, consumers can play an active role in increasing domestic demand for sustainable energy.”
MADANI Berkelanjutan (Masyarakat dan Alam Indonesia) is a non-profit organization working to address the climate crisis through research and advocacy. Established in 2016, MADANI Berkelanjutan promotes development pathways that balance economic, ecological, and social dimensions. The organization formulates and advances innovative climate solutions by fostering collaboration among diverse stakeholders. MADANI Berkelanjutan’s current focus areas include forests and climate, sustainable commodities, subnational sustainable development, and biofuels.
Media Contact:
Luluk Uliyah
Media & Stakeholder Engagement, MADANI Berkelanjutan
📧 luluk@madaniberkelanjutan.id
