INDEF: Biofuel Can Serve as a Bridge in Transition to EVs

Jakarta (ANTARA) - The Institute for Development of Economics and Finance (INDEF) assesses that biofuel policies, such as biodiesel and bioethanol, can serve as a transitional bridge to reduce dependence on imported fuel oil (BBM) before the mass adoption of electric vehicles (EV). “Biofuel could even, in my view, serve as a bridging fuel before EVs,” stated Andry Satrio Nugroho, Head of the Center for Industry, Trade, and Investment at INDEF, during an event titled “Towards Vehicle Electrification Without Budget Leakage” in Jakarta on Thursday. Andry believes that the role of biofuel as an energy transition bridge from fossil BBM will be particularly felt in underdeveloped, frontier, and outermost regions (3T), which have not yet been reached by electric vehicle support infrastructure. Therefore, he continued, while electric vehicle infrastructure is being built, communities can reduce their dependence on fossil BBM by switching to biofuel. The Ministry of Energy and Mineral Resources (ESDM) has announced that the mandatory biodiesel 50 or B50 policy will be implemented simultaneously for all sectors starting on 1 July 2026. Director General of New, Renewable Energy and Energy Conservation (EBTKE) at the Ministry of ESDM, Eniya Listiani Dewi, stated that B50 is still in the road testing phase, targeted to be completed by May 2026 for the automotive sector. The road testing phase, she explained, has been underway since 9 December 2025 on nine vehicles. After the road testing, the Ministry of ESDM will check the engine conditions.