Indonesia pushes biofuel mandates and energy reserves to slash fuel imports

During a policy outreach in Jambi, Muhammad Kholid Syeirazi of DEN highlighted Indonesia's strategy to cut fuel imports by increasing both fossil and renewable production. The government will raise the biodiesel requirement from one outlet B35 to B50, relying on intensified palm-oil plantations rather than new land. In parallel, following President Prabowo Subianto’s directive, the country will develop bioethanol capacity to achieve an E50 gasoline blend by 2030, a jump that demands expanding production from 60,000 to 16.5 million kiloliters.

To support energy security, DEN is drafting mechanisms for a state energy buffer reserve, targeting a 30-day import coverage by 2035 and eventually 60-90 days, starting with an initial five-to-ten-day stockpile. These measures aim to reduce Indonesia’s dependence on imported oil and gas while fostering domestic biofuel industries.