Indonesia’s Cassava Group Backs Yogyakarta Cultivation for 2028 E20 Target

Cassava proposed as feedstock for E20

The Indonesian Cassava Society, known as MSI, is promoting expanded cassava cultivation in the Special Region of Yogyakarta, or DIY, as Indonesia prepares to increase the bioethanol content of gasoline. According to Harian Jogja, the government is targeting a 10% bioethanol blend, or E10, in 2027 and E20 in 2028. Current use has reached only E5.

MSI chairman Arifin Lambaga said meeting the E20 target would require about 3 million kilolitres of bioethanol annually. If cassava supplied all of the feedstock, the industry would need approximately 21 million tonnes of the crop each year. At an average yield of 25 tonnes per hectare, production would require hundreds of thousands of hectares, alongside about 28 bioethanol processing plants.

Yogyakarta offers an established production base

Cassava would not necessarily be the sole raw material. Arifin noted that bioethanol can also be produced from sugarcane and corn. The calculations nevertheless show the scale of agricultural production and industrial investment that would be needed if cassava took a major role in the blending program.

MSI selected Yogyakarta for the proposed expansion because cassava cultivation is already established in the region. Its central position on Java could also support bioethanol distribution if local production is developed. The initiative seeks to align farm output with industrial specifications rather than treating cassava only as a traditional food crop.

The regional Agriculture and Food Security Agency, DPKP DIY, is still discussing whether to test particular cassava varieties on a small scale for bioethanol production. No cultivation location has been selected, and officials say plans must be discussed with local communities. Agency head Eko Aris Nugroho said cassava remains an option in Gunungkidul, where limited water availability can constrain other crops.

Farmer prices and plant investment remain unresolved

Farm economics are central to the proposal. Eko said farmers would expect cassava prices of Rp3,000 to Rp5,000 per kilogram, but some crops are currently valued at around Rp1,000 per kilogram. He said any processing plant would need to provide growers with certainty over both market access and prices.

The feedstock plan is also developing while the central government’s agricultural focus remains on rice and sugarcane rather than cassava, according to Eko. That creates a sequencing challenge: farmers need credible demand before expanding acreage, while processors need dependable volumes before committing capital to new facilities.

Arifin estimated that E10 and E20 could be economically viable when global oil prices are around $70–$100 per barrel. If oil falls below that range, he said government subsidies may be required. The viability of Yogyakarta’s cassava expansion therefore depends on several linked decisions: the national blending schedule, the mix of feedstocks, investment in processing plants and commercial arrangements that protect farmers from low prices.