Indonesia Accelerates Sugarcane Expansion to Boost Ethanol Production for E20 Target

The Indonesian government announced that it would increase the ethanol content in gasoline from 5 to 20 percent. The aim is to reduce dependence on petroleum products, the cost of which is rising steadily. 

To achieve this goal, the country must significantly increase its annual ethanol production, the Ministry of Energy explained. “E20 can be produced from sugarcane, cassava, and other raw materials,” said Food Minister Zulkifli Hasan on Tuesday, according to the Indonesian news agency Antara. New plantations would need to be established for production from sugarcane. 

Cleared land or forested areas

Agriculture Minister Andi Amran Sulaiman stated that the government intended to develop approximately one million hectares for sugarcane cultivation. The plan was to first use land that had already been cleared before considering forested areas. However, he did not rule out that possibility. 

Meanwhile, Indonesian Climate Envoy Hashim Djojohadikusumo, who is also the brother of President Prabowo Subianto, announced the suspension of a project that would have involved clearing several million hectares of forest to create land for rice cultivation. He explained that the move was made because the island nation had achieved self-sufficiency in rice, a staple food. 

According to the nongovernmental organization Mighty Earth, more than 50,000 hectares of rainforest, savanna, peatlands, and wetlands have been cleared in Indonesia since 2024 to make way for sugarcane and rice cultivation. 

Agriculture and Fires Threaten Forests 

Indonesia is one of the most forested countries in the world and is therefore an important carbon sink. Its forests sequester climate-damaging emissions from fossil fuels. However, the ongoing destruction of forests for agriculture and the timber industry, as well as uncontrolled fires, significantly reduce their ability to sequester carbon. 

Indonesia has a population of nearly 290 million. The country has long used palm oil to produce biodiesel and is working to increase its share. The Republic is one of the world’s largest producers of palm oil. The oil is grown primarily on land that was once forested.