Middle East Volatility: Bobibos Ready to Be Alternative Fuel as Costs Surge
Mulyadi, founder of Bobibos (Original Fuel Made in Indonesia), has addressed the opportunity for Bobibos to serve as an alternative fuel source for Indonesia during Middle East volatility. The unrest has influenced fuel prices owing to security escalations in the Strait of Hormuz.
Mulyadi stated that in principle Bobibos is ready to function as an alternative fuel for Indonesians. However, this readiness remains hindered by government approval.
“We are ready; what we need is regulation, investment, and protection (RIP) because this is an alternative, not a replacement, and does not disrupt other fuel businesses,” Mulyadi told Republika on Monday 9 March 2026.
Mulyadi emphasised the importance of protection for Bobibos’ development domestically. Without this, Mulyadi feared Bobibos would struggle to develop within the country. “If there is no protection, then RIP (the Bobibos business really dies),” said the House of Representatives member from Commission V of the Gerindra faction.
Mulyadi assured that Bobibos is ready to develop itself to bring benefits to the public after receiving approval. For now, Bobibos, which is a fuel derived from rice straw, has not yet found a place.
“Because the mandatory energy transition only applies to palm, sugarcane, and aren feedstocks, rice straw has not been given space and opportunity,” said Mulyadi.
Mulyadi also reminded that the potential for developing rice straw as fuel is considerable in Indonesia, given the vast number of rice paddies.
“According to the Central Bureau of Statistics, we have approximately 11 million hectares of rice paddies, so without opening new land and improving farmer welfare. Imagine 1 hectare of rice straw can produce 2,000 litres; if we only take 5 million hectares, that is already 10 billion litres,” said Mulyadi.
If Bobibos is officially used in Indonesia, Mulyadi outlined six benefits. Firstly, the public benefits by obtaining cheap, quality fuel. Secondly, farmers’ income increases. Thirdly, the state budget is saved through reduced imports. Fourthly, the environment is cleaner because plant-based sources produce nearly zero emissions. Fifthly, Indonesia becomes energy independent.
“Finally, Bobibos can create jobs. So there are six benefits,” said Mulyadi. On the other hand, owing to not yet receiving maximum government support, Bobibos has chosen to target markets in other countries. Bobibos has secured approval for use in Timor Leste.
“Preparations for the launch in Timor Leste are underway; we are awaiting the schedule of the Prime Minister and President, as they will officialise it,” said Mulyadi.