Indonesia pushes for full energy independence with new biodiesel mandate and sovereign fund
President Prabowo highlighted the July 2026 launch of a 50% biodiesel blend as a key step toward Indonesia’s goal of complete energy self-sufficiency within five years.
In mid-July 2026 Indonesia rolled out a 50% biodiesel blend mandate, which President Prabowo described as a tangible sign of the nation’s drive for energy sovereignty. He argues that mastering energy production is essential for eradicating poverty and achieving developed-country status, setting a five-year roadmap to full independence. The government points to abundant geothermal, coal, natural-gas and renewable assets across the archipelago as the foundation for this ambition.
PT Pertamina (Persero) and its subsidiary PT Pertamina Hulu Energi have pledged full support, urging staff to treat affordable energy as a national duty. The newly created sovereign wealth fund Daya Anagata Nusantara (Danantara) is channeling capital into low-carbon initiatives, such as expanding sugarcane-based bioethanol to replace gasoline, while retaining state-enterprise dividends for future energy projects rather than the 2026-27 state budget.
Why it matters
Indonesia’s push for energy self-reliance could reshape regional fuel markets and influence global climate efforts.
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