Key Provisions of the Decree of the Minister on the Implementation of E5

The Ministry of Energy and Mineral Resources (“ESDM”) ensures the implementation of the mandate for biofuel (“BBN”) in the form of gasoline blended with 5 percent ethanol, or E5. Director-General of New and Renewable Energy and Energy Conservation (“EBTKE”) Eniya Listiani Dewi stated that the implementation of the E5 mandate will be outlined in a Decree of the Minister of ESDM, which will also regulate the allocation of this blended gasoline.

“The implementation of E5 will depend on the Decree of the Minister on allocation,” said Eniya.

Eniya explained that the Decree of the Minister will govern the phased implementation of BBN (bioethanol) use in the form of blended gasoline, including provisions on implementing agencies, volumes and allocations, quality specifications, blending and distribution procedures, reporting and oversight, classification within the fuel regime (general or special assignment), and administrative sanctions. She assured that ethanol supply would be guaranteed through the readiness of supplier businesses.

Eniya also stated that she would not issue a new Decree of the Minister on the Market Price Index (“HIP”). The pricing scenario will continue to use the old HIP concept as stipulated in the previous Decree of the Minister.