Indonesia Strengthens Energy Security Through Biofuel Policies
Indonesia Strengthens Energy Security Through Biofuel Policies
08 Apr 2026 20:49 WIB
Voice of Indonesia
Key Points
Biofuels create new economic opportunities, particularly in renewable energy, while supporting the development of a circular economy.
Indonesian government is encouraging the gradual implementation of biofuels through regulations, including the upcoming B50 program.
RRI.CO.ID, Malang - The Association of Indonesian Automotive Industries (GAIKINDO) and the Association of Used Cooking Oil Collectors for Renewable Energy (APJETI) have expressed support for the implementation of biofuels as part of efforts to strengthen national energy security.
“We support the use of biofuels as a strategic step to strengthen national energy security, while still considering their suitability to vehicle technology in Indonesia,” said GAIKINDO representative Abdul Rahim in a statement received in Malang, East Java, on Wednesday, April 8, 2026, as quoted by Antara.
APJETI representative Matias Tumanggor added that the policy creates opportunities for renewable energy businesses, particularly in the use of household waste such as used cooking oil. “The biofuel policy opens doors for used cooking oil as a biodiesel and bioavtur source, while fostering a circular energy economy,” he said.
The Ministry of Energy and Mineral Resources (ESDM) has issued regulations to reinforce this policy, including a ministerial decree on the phasing of biofuel utilization and a ministerial regulation concerning biofuel businesses.
Eniya Listiani Dewi, Director General of New and Renewable Energy and Energy Conservation (EBTKE), explained that the policy encourages investment while ensuring industrial readiness. Biofuel utilization will be implemented in stages, covering biodiesel, bioethanol, and bioavtur, while taking national preparedness into account.
At the macro policy level, the government is encouraging higher biodiesel blends. President Prabowo Subianto has set a target to increase palm oil-based blends to strengthen energy security amid global uncertainty.
Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the B50 policy, which blends 50 percent biofuel with diesel, will be implemented in July 2026. The B50 policy is expected to save up to IDR 48 trillion in subsidies and significantly reduce fossil fuel consumption.
Through a combination of government policies, industry support, and the utilization of local raw materials, biofuel has emerged as a viable energy solution and a catalyst for green economic growth in Indonesia. ***
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