Indonesian Political, Business & Finance News

The Use of Biofuels Sparks New Concerns: What's Going On?

| | Source: REPUBLIKA Translated from Indonesian | Energi
The Use of Biofuels Sparks New Concerns: What's Going On?
Image: REPUBLIKA

REPUBLIKA.CO.ID, BANGALORE – Biofuel blends have become an option for Asian countries in dealing with the global energy crisis. In March, the government of President Prabowo Subianto announced that Indonesia would accelerate the implementation of the B50 biodiesel program. Other countries are also taking similar steps by implementing ethanol blends.

Energy analyst from the Energy Shift Institute, Putra Adhiguna, said that this initiative is part of the “energy sovereignty” program in response to the energy supply disruptions caused by the war between the United States and Israel with Iran. Putra said that in addition to responding to the global energy crisis, this step also helps develop the local palm oil market, which has so far been sold abroad. However, he warned that palm oil land clearing must be closely monitored to prevent excessive deforestation.

In April, Malaysia approved a proposal to gradually increase the fuel blend from 15 percent biodiesel and 85 percent fossil fuel to 20 percent biodiesel and 80 percent fossil fuel. Malaysian energy analyst Ahmad Rafdi Endut said the surge in global energy prices had “revived” the idea.

However, he warned that increasing the concentration of biodiesel in the fuel blend needs to be tested in more detail. This also raises concerns among consumers about fuel efficiency.

The concern that ethanol-blended fuels damage the efficiency of car engines has also been expressed by consumers in India. Advertising executive in Chennai, India, Sushmita Sankar, said the war in the Middle East forced her to spend more money on buying gasoline.

Sankar said that the ethanol-blended fuel currently available at Indian gas stations is worsening the fuel efficiency of her car.

“Fuel costs are rising and with only ethanol-blended gasoline available, I feel my car’s mileage has decreased in the past year,” she said, as quoted by AP, Friday (15/5/2026).

Sankar said that in addition to being busy with work and household chores, she now also has to spend more time filling up with gas or buying LPG. In India, the Middle East war has not only raised gasoline prices, but also LPG.

“I used to be able to get one LPG cylinder for 1,000 rupees or around Rp 186 thousand, now I pay 3,000 rupees or around Rp 558 thousand on the black market,” said taxi driver Ravi Ranjan.

Faced with gas shortages and rising crude oil prices, the Indian government has begun to propose policies so that vehicles can operate on up to 100 percent ethanol blends.

In this situation, India has also raised gasoline and diesel prices, triggering long queues in some areas, and banned sugar exports to ensure the availability of ethanol raw materials in the country. The Indian government claims this step will reduce pollution, although environmental experts warn of the risk of competition between energy needs and dwindling food and water supplies.

Although ethanol-blended fuels are often seen as a substitute for gasoline, experts warn that this is more complicated. Shyamasis Das from the Centre for Social and Economic Progress based in New Delhi said it is not yet known how higher ethanol blends will affect engines.

In addition, the manufacturing industry also needs time to develop engines that can function properly using higher concentrations of ethanol. Drivers may feel a difference in the engine because ethanol is less energy-dense than gasoline, which means vehicles tend to consume more fuel to travel the same distance.

Indian energy analyst from the Institute for Energy Economics and Financial Analysis (IEEFA), Charith Konda, said that every step to reduce oil imports is a good step. However, he warned that if done in a hurry, the policy will only result in regulatory uncertainty and confusion among car manufacturers.

In addition, there are still concerns that the plants needed to produce ethanol must compete with food supplies, thus increasing prices and pressure on water availability. In India, about 70 percent of ethanol comes from crops such as sugarcane, corn, and rice. Producing one liter of ethanol also requires between 3,000 liters and 10,000 liters of water.

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