Indonesia Strengthens Energy Security with Expanded Biodiesel Mandate under President Prabowo

Palm Oil Magazine
Indonesia Strengthens Energy Security with Expanded Biodiesel Mandate under President Prabowo. Photo by: Special

PALMOILMAGAZINE, JAKARTA – The Indonesian government is intensifying efforts to strengthen national energy security by promoting biodiesel as a key component in the energy transition. The B35 biodiesel mandate, requiring a 35% blend of biodiesel with diesel fuel, represents a concrete step toward energy security and reducing dependence on imported fuel.

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In his inaugural address on Sunday (20/10), President Prabowo Subianto emphasized that energy self-sufficiency would be a top priority of his administration. “We must achieve energy self-sufficiency using our own resources, such as palm oil, to produce energy and reduce reliance on other countries,” he stated. He also highlighted cassava, sugarcane, and sago as additional renewable energy sources.

Energy and Mineral Resources Minister Bahlil Lahadalia reiterated the president’s focus on energy independence, stating, “Energy independence is our primary goal, and biodiesel will play a significant role in achieving it. We have made progress, with B40 testing now complete,” as quoted by Palmoilmagazine.com on Monday (28/10/2024).

Also Read: Palm Oil Governance Should be Improved in the Era of President Prabowo Subianto

Bahlil also mentioned the plans of the government to go forward by developing B50 and B60 because Indonesia would have abundand supplies. “If I am asked, do we have enough crude palm oil (CPO), we do. But we have to test the technology so when it is implemented, B50 and B60 should have been prepared and ready to apply,” he said.

Head of Communication, Public Information Serivce, and Communication Bureau Ministry of Energy and Mineral Resource, Agus Cahyono Adi emphasized taking advantages on biodiesel kept increasing in the last several years. “The increasing trend showed that the government would seriously minimize fossil fuel dependence. B35 has been implemented, it would be B40, to B50 and B60,” he said in Jakarta, Saturday (26/10).

Data from the ministry showed that biodiesel realization reached 9,3 million kiloliters in 2021, got escalated to be 10,45 million kiloliters in 2022, to be 12,2 million kiloliters in 2023. By implementing B35 that has started in August 2023, the government saved the revenue up to Rp 120,54 trillion. The additional values from CPO conversion to be biodiesel contributed Rp 15,82 trillion and hired about more than 1,5 million workers both in off-farm and on-farm.

Biodiesel optimization would be not only the strategic thing to realize national scale – energy security but also the significant contribution to create more sustainable and optimal economy. (P2)

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