To Prevent Crisis, Here Are the Alternative Energy Sources Replacing Fossil BBM-LPG

Jakarta, CNBC Indonesia - The government is currently preparing various options to replace the role of Petroleum Fuel (BBM) and Liquefied Petroleum Gas (LPG) based on fossils, which still rely on imported supplies.

In particular, the world is currently facing geopolitical pressures, namely the war between Israel-United States and Iran in the Middle East region, which impacts disruptions to global oil and gas supplies.

The Ministry of Energy and Mineral Resources (ESDM) records that Indonesia, through PT Pertamina (Persero), imports 135.33 million barrels of crude oil throughout 2025.

Of that total, around 19% or 25.36 million barrels come from Saudi Arabia. The rest are supplied from various countries, including regions in Africa, Latin America, the United States, Malaysia, and several other countries.

In addition to crude oil imports, Indonesia also has long-term cooperation with Singapore and Malaysia for BBM product supplies.

Efforts to seek alternative energy sources are also in line with directions from Indonesian President Prabowo Subianto before departing for Japan last weekend. In addition to heading towards energy self-sufficiency, this alternative energy can also strengthen national energy resilience and independence.

“This is a follow-up to the direction from Mr President during our meeting last week, before he departed for Japan and South Korea,” said Minister of Agriculture Amran Sulaiman, during a press conference at his office in Jakarta on Monday (30/3/2026).

So, what are the alternative energy options to replace fossil-based BBM-LPG?

Bioethanol

President Prabowo Subianto has directed Indonesia to develop bioethanol, namely Vegetable Fuel (BBN) replacing petrol based on sugarcane, sugarcane molasses, cassava, wheat, sorghum, or corn.

Minister of Agriculture Amran stated that President Prabowo has directed the government to develop bioethanol blending up to 20% (E20) for petrol-type BBM.

“20% ethanol blend with petrol. From where? Corn, cassava, and sugarcane. All can grow in Indonesia,” Amran explained.

According to him, blending bioethanol with petrol can reduce consumption of fossil-based BBM. Considering that Indonesia currently still imports up to 50% of fossil-based BBM.

He also assured that raw materials are sufficient, including from sugarcane molasses that has been exported so far.

“Our raw materials that we export. There is 1 million tons. That’s molasses or sugarcane drippings. This can be made into and can produce 300 thousand tons of ethanol,” he said.

It should be noted that the government has not yet implemented a national bioethanol mandate. What is currently being implemented is the corporate action of PT Pertamina (Persero) for 5% ethanol blending (E5) sold under the Pertamax Green brand (equivalent to RON 95). This is a blend of Pertamax (RON 92) with 5% ethanol.

Biodiesel

The government is also continuing the palm oil biodiesel programme, including the target to increase blending to 50% (B50) to stop diesel imports.

“Mr President’s promise that we stop diesel imports replaced by palm biofuel B50. That’s 5.3 million tons. This year we don’t import. And that’s done,” said Amran on the same occasion.

According to him, the geopolitical situation actually becomes a momentum to strengthen national energy and food independence.

In line with that, Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has emphasised that diesel-type BBM is no longer dependent on imports, so domestic supplies are sufficiently secure despite energy supply disruptions in various countries.

This is triggered by the implementation of 40% biodiesel (B40), and also the operation of the Refinery Development Master Plan (RDMP) Balikpapan project. Even if B50 biodiesel is implemented in the second semester of 2026, it is estimated that Indonesia’s diesel BBM will experience a surplus.

Although several countries in Asia have announced energy crisis conditions, according to him, Indonesia’s current energy condition is still considered safe.

“Even though other countries, neighbouring countries in part, some countries in Asia have started entering a condition not desired by almost all countries in this case emergency, we must assure the Indonesian people that our diesel, God willing, we no longer import, so clear,” he said during a press conference after inspecting BBM supplies at the Bolon petrol station, Colomadu Subdistrict, Karanganyar Regency, Central Java, on Thursday (26/3/2026).

Electrification

Executive Director of the Center of Economic and Law Studies (CELIOS) Bhima Yudhistira once suggested that the Indonesian Government accelerate the vehicle electrification programme in parallel.

“Sweden is a country that is immune to oil volatility because 61% of the share of EVs (electric vehicles) from all new cars,” Bhima told CNBC Indonesia some time ago.

In agreement, Chief Executive Officer (CEO) of the Institute for Essential Services Reform (IESR) Fabby Tumiwa stated that the transition to electric vehicles and electric stoves could be a strategic step to reduce consumption of imported-based energy, both BBM and LPG.

“For example, in the transportation sector, transitioning one million fossil fuel vehicles to electric vehicles is estimated to significantly reduce crude oil needs. Replacing one million electric vehicles can reduce crude oil needs by up to 13.2 million barrels per year,” Fabby said some time ago.

As for the household sector, he continued, the use of electric stoves is also considered effective in reducing LPG consumption. For capable households, electric stoves are even more economical than non-subsidised LPG, while reducing dependence on energy imports.

“If households start using induction stoves, LPG savings can reach more than 130 tons per year,” he added.

PLTD to PLTS

The Ministry of Energy and Mineral Resources (ESDM) will replace the power plant fuel source from Diesel Power Plants (PLTD) based on BBM to Solar Power Plants (PLTS) in remote areas.