The Ministry of Energy and Mineral Resources (ESDM) is preparing a\nnew framework to accelerate the development of biofuels. This regulation\nserves as the foundation for a more measured mandatory biofuel policy,\nincluding targets to increase blending up to B50.<\/p>\n
The government has established two main rules: Ministerial Decree\nNo.\u00a0113.K\/EK.05\/MEM.E\/2026 on the Phasing of BBN Utilisation and\nMinister of ESDM Regulation No.\u00a04 of 2025 on BBN Business and\nUtilisation. Both regulations aim to strengthen energy independence,\nincrease the renewable energy mix, and reduce energy imports.<\/p>\n
Director General of New, Renewable Energy, and Energy Conservation\nEniya Listiani Dewi stated that strengthening regulations is necessary\nto ensure biofuel implementation proceeds realistically in line with\nnational readiness.<\/p>\n
\u201cThrough more comprehensive regulations and clear phasing, we aim to\nensure that BBN utilisation can be implemented optimally, while still\nconsidering the readiness of raw materials, infrastructure, and industry\nsupport,\u201d said Eniya.<\/p>\n
Eniya explained that biofuels play a strategic role in the national\nenergy system, not only to reduce emissions but also to strengthen the\ndomestic energy base. Their utilisation is seen as capable of driving\ndomestic resource-based industries while reducing reliance on energy\nimports.<\/p>\n
In this scheme, mandatory biofuel implementation will be carried out\ngradually, considering the availability of raw materials, infrastructure\nreadiness, financing support, and user sector readiness. This approach\nis expected to maintain supply stability and not disrupt field\noperations.<\/p>\n
The Ministerial Decree on BBN phasing serves as a strategic reference\nfor biofuel blending in petroleum fuels. This rule also provides\ncertainty for investments and biofuel industry development, including\nfor the public service sector.<\/p>\n
Meanwhile, Minister of ESDM Regulation No.\u00a04 of 2025 regulates the\nBBN business chain comprehensively, from provision to distribution and\nend utilisation. This regulation also covers pricing, business entity\nobligations, technical aspects, safety, environment, incentives, and\ncarbon economic value.<\/p>\n
BBN utilisation phasing not only covers biodiesel but also\nbioethanol, biohydrocarbon diesel, and biojet fuel. All will be\nimplemented gradually according to the needs of national energy sector\ndevelopment.<\/p>\n
Representative of the Indonesian Automotive Industry Association\nAbdul Rahim stated that industry support for biofuels still considers\nvehicle technology readiness.<\/p>\n
\u201cWe support the utilisation of biofuels as a strategic step to\nstrengthen national energy resilience, while paying attention to the\nsuitability with the diverse characteristics of vehicle technology in\nIndonesia,\u201d said Abdul.<\/p>\n
Representative of the Indonesian Used Cooking Oil Collectors\nAssociation for Renewable Energy Matias Tumanggor stated that this\npolicy opens opportunities for utilising used cooking oil as an energy\nraw material.<\/p>\n
\u201cThe BBN utilisation policy provides great opportunities for\nutilising used cooking oil as a raw material for biodiesel and biojet\nfuel, while also encouraging the development of a circular economy in\nthe energy sector,\u201d said Matias.<\/p>\n
The government views these regulations as the initial foundation to\nstrengthen the national biofuel ecosystem. Their implementation is\nexpected to encourage cross-sector collaboration in supporting the\nenergy transition towards the 2060 net zero emissions target.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/these-two-regulations-become-the-new-foundation-for-biofuel-development-1775638381", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }