Indonesia Biodiesel Program: 2025 B40, 2026 B50

The Minister of Energy and Mineral Resources, Balil Rahadarya, recently stated that the Government of Indonesia will not only emphasize the independence of oil and gas in achieving energy self-sufficiency, but will also vigorously promote the development of renewable energy. He emphasized that Indonesia aims to be a country that achieves independence in both conventional and renewable energy.

In line with President Prabowo Subianto’s Asta Cita vision for national development, the government is taking a number of strategic measures and plans to significantly increase renewable energy capacity over the next few years to support the global transition to cleaner and greener energy. Among them, a mandatory 40% biodiesel (B40) program will be implemented in 2025, followed by a B50 program in 2026, with the goal of reducing diesel imports and achieving energy independence.

In 2023, Indonesia’s biodiesel use reached 12.2 million kiloliters, with plans to increase to 12.5 million kiloliters by 2025. This move not only saves about US$7.9 billion in foreign exchange, but also adds Rp 15.82 trillion in value added by processing crude palm oil into biodiesel.

Minister Rahadaria placed special emphasis on the development of geothermal energy, which is expected to increase the share of renewable energy in the country’s energy mix to 14.1% by the end of 2024, with geothermal energy contributing 40%. Currently, geothermal power generation has made Indonesia the second largest geothermal power producer in the world, with an installed capacity of 2.6 GW.

In addition, the government is committed to increasing oil and gas extraction, optimizing energy block development, accelerating the penetration of electric vehicles, and improving energy efficiency. The Minister noted that cooperation with the private sector and communities was crucial to achieving national energy security. Through these comprehensive measures, Indonesia was on the path to stronger and more sustainable energy independence.