Indonesia Has 'Miraculous' Crops That Could Save the Nation During Energy Crisis

Jakarta, CNBC Indonesia — The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has underscored the critical importance of crude palm oil (CPO) in safeguarding Indonesia’s national energy security, particularly amid uncertainties surrounding global oil supply caused by conflicts in the Middle East.

According to Bahlil, the government is currently conducting pilot trials of a mandatory biodiesel blend programme based on palm oil at 50% (B50) in diesel fuel. These trials are targeted for completion in the second half of this year.

“We are currently testing B50. The trials will be completed in the second semester,” said Bahlil at the ESDM Ministry on Wednesday (11 March 2026).

He assessed that Indonesia possesses a significant advantage due to its abundant CPO resources, which can be leveraged to reduce dependence on imported energy.

Bahlil stated that should global geopolitical conditions continue to trigger energy supply disruptions, the government could increase the biodiesel blend ratio further, ranging from B50 to B60.

“Because we are seeking every possible solution by utilising all domestic energy sources to strengthen our energy resilience,” he said.

Previously, President Prabowo Subianto expressed optimism that Indonesia is capable of producing fuel from crops. He made this statement amid growing uncertainty in global energy supply and rising crude oil prices caused by the conflict between Iran and Israel, which also involves the United States.

According to Prabowo, Indonesia possesses substantial natural resource potential to achieve energy self-sufficiency through the development of biofuels. For example, crops such as palm and cassava can be processed into alternative energy sources capable of reducing reliance on fuel imports.

Prabowo reminded the public that for years, the government has pursued national energy independence. Indonesia has been endowed with resources that enable fuel requirements to be met domestically.

“We have been blessed by the Almighty with the capacity to meet our fuel needs not from foreign imports, but from our own crops — from palm oil, from cassava,” said Prabowo during a virtual press conference on Tuesday (10 March 2026).