Indonesia Accelerates Biodiesel, Can It Replace Fossil Fuels?
Indonesia continues to accelerate the development of biodiesel as one step towards reducing dependence on fossil fuels while curbing carbon emissions. This effort forms part of the national energy transition strategy aimed at promoting the use of renewable energy sources.
Several industrial sectors are being encouraged to play a larger role in supporting this agenda. One highlighted sector is the palm oil industry, which is seen as having significant potential in developing renewable energy based on bioenergy, particularly biodiesel.
This topic was a key discussion point at an energy forum held in Palembang on 16–17 April 2026. The forum brought together industry players, government representatives, academics, and other stakeholders to discuss the direction of Indonesia’s energy transition.
GAPKI General Chairman Eddy Martono views palm oil not only as an economic commodity but also as having a strategic position in supporting national energy security. He emphasised that the potential of palm oil as a renewable energy source needs to be developed in a directed manner.
Meanwhile, Director of Finance, Risk, and General Management at the Plantation Fund Management Agency (BPDP), Zaid Burhan Ibrahim, highlighted the importance of funding and governance aspects in developing palm oil-based energy.
“Support in financing and strengthening governance is key to developing renewable energy based on palm oil. Biodiesel programmes and renewable energy development require targeted financing support and strong governance to ensure sustainability,” he said, as quoted from a press release on Tuesday, 5 May 2026.
Therefore, he added, collaboration between the government, fund management institutions, and industry players also needs to be continuously strengthened so that the sector can contribute to Indonesia’s national energy security.
At the forum, various issues were discussed, from energy efficiency and the development of new renewable energy to the role of the industrial sector in supporting national carbon emission reduction targets. The discussions also spotlighted the challenges of implementing the energy transition in the field, including technological readiness and supporting ecosystems.
In addition to discussions, the forum also presented appreciations to several parties deemed to have contributed to the development of sustainable energy in Indonesia. These awards serve as encouragement to strengthen innovation and cross-sector collaboration.