The Agreement on Reciprocal Trade with Indonesia, signed last week by President Donald Trump, expands American market access to the world’s fourth most populous country while eliminating tariff barriers on over 99% of U.S. products exported to Indonesia across all sectors, including ethanol.

Renewable Fuels Association President and CEO Geoff Cooper thanked President Trump and U.S. Trade Representative Jamieson Greer for a trade agreement that helps open the door to ethanol exports to the country. “At a time of record U.S. ethanol exports, this new agreement will help open the door to a new market where low-cost, low-carbon ethanol is wanted and needed,” said Cooper. “Indonesia has long been a priority market for U.S. ethanol, with potential demand of roughly 1 billion gallons if 10-percent ethanol blends are used nationwide.”

Cooper says the agreement importantly states that Indonesia shall not adopt or maintain any measure that prevents the import of U.S. ethanol. As Indonesia plans to implement its policy to supply transportation fuels blended with up to five percent ethanol (E5) by 2028 and up to 10 percent ethanol (E10) by 2030, the agreement also says Indonesia will ultimately endeavor to use 20 percent ethanol (E20), subject to the availability of supply and the readiness of supporting infrastructure.

The industry has already been working with Indonesian officials and stakeholders to implement import policies that allow Indonesia to prioritize its domestically produced ethanol while allowing U.S. ethanol to fill any supply gaps or deficiencies.

Earlier this month, RFA General Counsel Ed Hubbard joined other industry members and USDA Under Secretary Luke J. Lindberg for an Agricultural Trade Mission (ATM) to Jakarta, Indonesia, to promote U.S. ethanol. The mission culminated in an ethanol policy workshop which brought together senior policymakers and regulators, private industry leaders and researchers to support Indonesia’s planned transition to E10 ethanol blending. Presentations and panel discussions addressed regulatory alignment for E10 implementation, ethanol pricing mechanisms, excise treatment of fuel-grade ethanol, infrastructure readiness and feedstock diversification strategies. The workshop was organized by the U.S. Grains & BioProducts Council (USGBC).