Indonesian Political, Business & Finance News

After Eid, Government to Readjust Fuel Allocation? This Is What MEMR Says

| Source: CNBC Translated from Indonesian | Energy
After Eid, Government to Readjust Fuel Allocation? This Is What MEMR Says
Image: CNBC

Jakarta — The Ministry of Energy and Mineral Resources (MEMR) announced that the implementation of biofuels (BBN) as a blend with petroleum fuel (BBM) will be accelerated. This measure aims to help Indonesia reduce its dependence on fossil fuels.

Beyond this, the acceleration of biofuel implementation addresses concerns about dwindling global oil stocks resulting from escalating conflicts in the Middle East. Indonesia, however, remains dependent on crude oil imports.

“First, we are not only dependent on BBM, but rather fossil-based BBM. We also have this alternative of implementing higher blends like B40 (biodiesel 40%) and B50 (biodiesel 50%),” said Yuliot at the BPH Migas office in Jakarta on Thursday (12 March 2026).

The implementation of B50 also serves as a response to concerns that Indonesia may struggle to access oil from other countries. This has been reported to President Prabowo Subianto as a precautionary measure for the nation.

“The Minister has been tasked by the President to prepare contingencies. In the event of supply constraints, we will implement B50 as quickly as possible,” he added.

In addition to accelerating B50 implementation, the government is also preparing additional contingencies for petrol. Petrol can be blended with bioethanol (biofuel derived from molasses).

“We will make it mandatory. So mandatory based on the availability of domestic feedstock, it may become mandatory E5, E10, and even by 2028 we have already announced E20,” he concluded.

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