Last month the government announced it will raise the ethanol component of transport biofuel from the current 5% to 20% (E20). The change aims to cut dependence on costly imported petroleum.

The energy ministry estimates that about four million kilolitres of ethanol per year will be required – a volume far beyond Indonesia’s present production capacity.

Food Minister Zulkifli Hasan said new sugarcane plantations are needed, and Agriculture Minister Andi Amran Sulaiman said the goal is about one million hectares for sugarcane. The plan is to start with already degraded land before considering forested areas.

Since 2024, more than 50,000 hectares of rainforest, savannah, peat swamp and wetlands have been cleared for sugarcane and rice, according to the NGO Mighty Earth. Indonesia, one of the world’s most forested nations, aims to become a net carbon sink by 2030, but continued land clearing threatens that ambition.

The policy shows how a push for biofuel can drive large‑scale crop expansion, creating a trade‑off between energy security and forest conservation. Balancing these goals will be crucial for Indonesia’s climate and economic future.