Indonesia removes ban on pre-blended US origin ethanol imports

In Washington, U.S. ethanol can now enter the Indonesian market by way of pre-blended fuel, following the recent removal of a ban on pre-blended product entering the country. This change creates a potential market of more than 200 million gallons (71 million bushels in corn equivalent).

The market development efforts to accomplish this policy goal began in December 2017, undertaken jointly by the U.S. Grains Council (USGC), Growth Energy, Renewable Fuels Association (RFA) and the U.S. Department of Agriculture’s Foreign Agricultural Service (USDA’s FAS).

Already the fourth most-populous country in the world, Indonesia is expected to grow to the sixth largest global gasoline market within a decade. This increased demand for fuel is driven by members of the country’s rising middle class, who are dedicating part of their higher incomes to upgraded transportation options – especially from two-wheeled to four-wheeled vehicles.