DEN: Long-term planning essential to achieve energy security
In the long term, planning should be implemented to identify where productivity can be increased, or perhaps the establishment of dedicated plantation areas to supply biodiesel.
Jakarta (ANTARA) - The National Economic Council (DEN) has emphasised the importance of long-term planning regarding strategic policies in the energy sector as a step towards achieving the national energy security mission.
Executive Secretary of the DEN, Septian Hario Seto, speaking at a discussion in Jakarta on Tuesday, stated that measured and balanced long-term planning is expected to meet domestic needs while maintaining positive export performance.
“I believe long-scale planning can be balanced, which would be better, so that the long-term effect is that our exports are well-maintained, while on the other hand, domestic energy security can be preserved and subsidies can be made more efficient,” said Septian.
He cited the B50 biodiesel mandate, set for July 2026, as an effort to reduce carbon emissions. B50 biodiesel uses palm oil or crude palm oil (CPO) as its primary raw material.
According to Septian, this mandate also requires a comprehensive cost-benefit analysis so that its impact can be clearly measured.
He added that this policy is highly relevant amidst the dynamics of global oil prices caused by geopolitical conditions, such as those in the Middle East.
“Looking at this context, increasing B50 is certainly a good policy option. The effect is that subsidies will decrease; even if we look at industrial diesel, which is not subsidised, the price could also drop significantly compared to if it were not blended with biodiesel at all. The benefits must be assessed,” Septian explained.
However, he warned that this must be balanced with production levels to meet domestic demand.
“In the long term, planning should be conducted to determine where productivity can be increased, or perhaps the creation of dedicated plantation areas to supply biodiesel,” said Septian.
Previously, Indonesia officially implemented the B50 biodiesel mandate effective July 2026.
According to information from the Ministry of Energy and Mineral Resources (ESDM), the implementation of B50 in 2026 is expected to reduce greenhouse gas emissions by approximately 44.46 million tons of CO2 equivalent. This is an increase from the foreign exchange savings and emission reductions achieved under the B40 programme in 2025.
With the launch of the B50 mandate, Indonesia is recorded as the first country in the world to implement a 50 per cent biodiesel blending requirement into diesel fuel, continuing the series of biodiesel programmes including B30, B35, and B40 that have been running for over a decade.
In addition to reducing carbon emissions, the B50 mandate is also projected to save the state’s foreign exchange by approximately Rp170 trillion by 2026, increase the added value of CPO, and absorb around 2.1 million workers.