Indonesian Political, Business & Finance News

Analyst assesses B50 strengthens Indonesia's energy resilience against global turmoil

| Source: ANTARA_ID Translated from Indonesian | Energy
Analyst assesses B50 strengthens Indonesia's energy resilience against global turmoil
Image: ANTARA_ID

Energy analyst and Advisory Board member of the Indonesian Renewable Energy Society (METI) Feiral Rizky Batubara has assessed that the B50 biodiesel programme strengthens Indonesia’s energy resilience in facing global turmoil. “B50 is not merely a fuel blending programme, but a national strategy to transform Indonesia’s natural resource advantages into genuine energy independence,” Feiral said in a statement received in Jakarta on Monday. According to Feiral, the B50 policy arrives at the right momentum as the world remains overshadowed by geopolitical uncertainty and oil price fluctuations. With a larger proportion of biodiesel in the energy mix, Indonesia can reduce the use of fossil-based diesel, save foreign exchange, improve the trade balance, while simultaneously encouraging growth in the plantation sector and the downstream palm oil industry. Therefore, he continued, Pertamina must maintain the readiness of B50 implementation, including optimal supply chain capacity. Other aspects that need to be maintained are the strengthening of blending facilities, storage, distribution, and quality control. All these aspects are important factors that influence the quality of biodiesel and its widespread utilisation by both the public and industry. At the same time, technical testing on various types of vehicles and public education must be continuously expanded to increase confidence in the use of B50. Feiral also stressed the importance of synergy between the government, Pertamina, and the palm oil industry so that B50 implementation proceeds sustainably. The government is deemed necessary to maintain regulatory consistency and long-term policies, while the palm oil industry ensures the availability of raw materials that meet sustainability principles. Such collaboration, he said, will build an increasingly strong national bioenergy ecosystem. Furthermore, the implementation of B50 is believed to be capable of becoming the foundation towards energy independence. As one of the world’s largest palm oil producers, Indonesia has a great opportunity to optimise downstream processing so that domestic energy needs can be met. Another benefit is that the country can reduce its vulnerability to oil price volatility and global supply chain disruptions. “If policy consistency, downstream investment, and collaboration among all stakeholders are maintained, Indonesia not only has the potential to become the largest biofuel user, but also to play a role as a key player in the sustainable bioenergy industry at the global level,” he said.

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