Jakarta, October 12, 2026 – Yayasan MADANI Berkelanjutan has urged the government to put an end to the continuous stream of misleading statements issued by public officials. The policy plan to clear new land to meet national bioenergy ambitions, including the E20 bioethanol and B50 biodiesel programs, is fundamentally misguided.
During his keynote speech at the Indonesia Sustainability Forum (ISF) 2026 in Jakarta on Tuesday (10/06), Special Presidential Envoy for Climate and Energy Hashim Djojohadikusumo stated that the government no longer sees a need to expand rice cultivation into forest areas because rice self-sufficiency has been achieved, shifting the focus toward intensification. In a subsequent panel session at the forum, Special Presidential Envoy for International Trade and Multilateral Cooperation Mari Elka Pangestu conveyed on Hashim’s behalf that future food and biofuel production would utilize degraded land which she noted spans over 12 million hectares and that this had been agreed upon with the Minister of Agriculture and the Minister of Forestry.
However, following the same forum, Coordinating Minister for Food Affairs Zulkifli Hasan (Zulhas) emphasized that the 20% ethanol blending target (E20) necessitates opening new sugarcane plantations. In his address at the ISF, Zulhas also noted that B50 is already underway and E20 will be established within five years. This was not merely an offhand remark, but a continuation of the plan Zulhas outlined following a limited cabinet meeting with President Prabowo Subianto at the State Palace on September 16, 2026: the government is preparing approximately 2 million hectares of sugarcane land for E20, spread across Kalimantan, Sumatra, Java, and Papua. At the ISF, Minister of Investment and Downstreaming Rosan Roeslani also highlighted that B50 has been in effect since July, alongside a 5% ethanol mandate for non-subsidized gasoline in Java this year.
"At the same forum, the government committed to developing biofuels on degraded land, yet the Coordinating Minister for Food Affairs stated that E20 must be met by opening new sugarcane plantations. These two statements cannot both be true. The 2-million-hectare sugarcane plan targeting Papua poses a direct threat to forests and customary territories. The government must decisively clarify the trajectory of Indonesia’s biofuel policy without delay, ensuring that bioenergy ambitions do not come at the expense of ecosystems," said Nadia Hadad, Executive Director of Yayasan MADANI Berkelanjutan.
While statements regarding biofuel development on degraded land and agricultural intensification align with our views, MADANI Berkelanjutan considers commitments to "degraded land" and intensification meaningless until they are enacted into legally binding regulations, clearly defined, and enforced across the energy sector. The track record of food estate projects demonstrates that large-scale land expansion is frequently pursued without adequate environmental carrying capacity assessments and without the consent of Indigenous communities.
This aligns with the findings of the study Assessing Ambitions and Realities: The Future of Indonesia's Biofuels within a Just Energy Transition Framework, released by MADANI Berkelanjutan on September 29, 2026. The study indicates that Indonesian biofuels remain heavily reliant on a single commodity: oil palm. An Environmental Carrying and Absorptive Capacity (D3TLH) assessment conducted by MADANI Berkelanjutan alongside Sawit Watch, Satya Bumi, and Lokahita sets the upper ecological limit for oil palm plantations at 18.15 million hectares, whereas existing palm oil coverage had already reached 17.8 million hectares in 2024.
This means that the ecological space for expanding biofuel feedstock commodities is virtually exhausted. As the system nears its threshold, additional demand driven by higher blend mandates inevitably translates into land expansion that threatens forests, peatlands, and areas of high biodiversity value. The E20 target and the development of new sugarcane plantations add fresh pressures, particularly in Papua. The same study highlights that alternative pathways exist: approximately 7 million hectares of oil palm plantations over 20 years old could be optimized through replanting, and biofuel utilization would be far more appropriately directed toward sectors with limited decarbonization alternatives such as maritime and aviation transport rather than land transport, which already has electrification options.
"Our study shows that palm oil has nearly hit the ceiling of its environmental carrying capacity. Bioenergy cannot be left unchecked. The boundary must be clear: no natural forests, peatlands, savannas, or customary territories should be sacrificed to meet fuel blend targets," added Riza Egi Arizona, Community-Based Energy Transition Program Lead at Yayasan MADANI Berkelanjutan.
Therefore, MADANI Berkelanjutan urges the government to:
Halt plans for new land clearing, including natural forests, peatlands, and other natural ecosystems, to fulfill the targets of E20, B50, and other bioenergy programs.
Enshrine the commitment to "food and biofuels only on degraded land" into legally binding regulations that apply equally across both the food and energy sectors.
Establish transparent definitions and criteria for degraded land, grounded in Environmental Carrying and Absorptive Capacity (D3TLH) assessments, while ensuring that savannas, natural ecosystems, and customary territories are not labeled as "degraded."
Review and evaluate all areas released from state forest areas or designated for National Strategic Projects (PSN) in South Papua, including ongoing sugarcane and bioethanol projects, and halt further land clearing across these sites.
Reassess E20 and B50 targets against environmental carrying capacity thresholds before converting them into land area targets, which includes respecting the 18.15-million-hectare ceiling for oil palm cover and prioritizing the replanting of aging plantations over new land clearing.
Formulate an inclusive roadmap for biofuel development in Indonesia by actively engaging diverse stakeholders.
Notes to the Editor:
Recording of the ISF 2026 event on Kadin Indonesia's YouTube channel: https://www.youtube.com/watch?v=Odh66exBnV4
Hashim (1:14–1:21): The announcement strictly pertains to rice cultivation in forest areas. He made no mention of biofuels or degraded land. He also stated that rice fields in Papua are planted in swamps, "not peatlands," and acknowledged that many investors are eager to enter the sugar sector.
Mari Pangestu (3:21–3:23): Confirmed the commitment to develop food and biofuels on degraded land, referencing the figure of over 12 million hectares and agreements with the Minister of Agriculture and the Minister of Forestry. She linked this effort to the Ministry of Forestry's afforestation, reforestation, and revegetation programs.
Rosan (0:42): Highlighted B50 implementation since July, 5% ethanol for non-subsidized gasoline in Java this year, and a Sustainable Aviation Fuel (SAF) mandate starting in 2027. E20 was not mentioned here.
Zulhas: The ISF speech (video clip) stated, "B50 now, Mr. Bahlil within 5 years will achieve E20," without mentioning land. The remark that "new plantations must be opened" was made to the media following the forum (as reported by Bloomberg Technoz and CNN Indonesia).https://madaniberkelanjutan.id/publication/assessing-the-ambition-and-reality-of-biofuels-in-indonesia
Cabinet Secretariat (Setkab) press release regarding the government's preparation of approximately 2 million hectares of land spread across several regions, including Java, Sumatra, Kalimantan, and Papua: https://setkab.go.id/pemerintah-siapkan-produksi-e20-dalam-dua-tahun-tebu-jadi-sumber-etanol/
About Yayasan MADANI Berkelanjutan
Yayasan MADANI Berkelanjutan is a non-governmental organization (NGO) dedicated to advocacy and strategic research to advance the governance and implementation of biodiversity protection, alongside inclusive, sustainable, and equitable development for the preservation of ecological systems and local communities across Indonesia.
Media Contact:
Jay Fajar, jay@madaniberkelanjutan.id
