InfoSAWIT, BOGOR – Director of Bioenergy at the Directorate General of New, Renewable Energy, and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources (ESDM), Edi Wibowo reaffirmed the government's commitment to strengthening national energy resilience through the accelerated utilization of palm oil biodiesel. This aligns with President Prabowo Subianto's directive to achieve food self-sufficiency, energy, and blue economy, as outlined in Presidential Decree No. 1 of 2025 on National Energy Resilience.
“We focus on three main pillars: reducing fossil fuel imports, increasing the utilization of renewable energy based on palm oil, and promoting a green economy by reducing greenhouse gas emissions,” Edi stated during the Workshop for Journalists in the Palm Oil Downstream Industry, attended by InfoSAWIT, in Bogor on Saturday, February 22, 2025.
Biodiesel Strategy and Achievements
Edi explained that Indonesia's biodiesel program has been running since 2008 with significant progress. From 2008 to 2015, trials for B2.5 to B10 biodiesel were conducted. Then, from 2016 to 2020, B20 to B30 was implemented.
From 2022 to 2024, the program is set to increase to B35, with a production target of 13.5 million kiloliters (KL) in 2023, of which 13.93 KL is allocated for domestic needs. The target for 2025 is B40, with preparations for B50.
“Currently, 93% of biodiesel production is allocated for domestic use. This proves that palm oil is not only an export mainstay but also the backbone of energy resilience,” he emphasized.
The biodiesel program is supported by various regulations, including government regulations, presidential regulations, and ministerial decrees, as well as the establishment of production locations across 22 provinces. Edi stressed that each increase in biodiesel blend (such as from B30 to B35) is always preceded by technical feasibility tests, including diesel engine and vehicle tests since 2016.
“Tests on the road and in laboratories show that palm oil biodiesel is engine-friendly and reduces emissions by up to 50% compared to fossil diesel,” he added.
Challenges
To achieve the B40 target by 2025, Edi acknowledged the need for synergy with the Ministries of Agriculture and Industry, as well as business actors. Currently, the biodiesel allocation for 2025 has been set at 16.46 million KL, with distribution through Pertamina and PT AKR Corporindo.
“We also need to expand into non-traditional markets, such as exporting green gasoline to Europe and America, as well as palm oil derivatives for the chemical industry,” he stated.
The biodiesel program is said to contribute to, first, foreign exchange savings of up to Rp165 trillion (2023) due to the substitution of diesel imports. Second, the absorption of 1.6 million jobs in the upstream and downstream palm oil sectors. Third, a reduction in CO2 emissions equivalent to 25.6 million tons in 2023.
“This is not just about energy, but also sustainable development. Palm oil is Indonesia's green asset for the global energy transition,” Edi concluded.
With affirmative policy support and massive palm oil potential, ESDM believes Indonesia can become a key player in the global renewable energy landscape while realizing the vision of Golden Indonesia 2045. (T2)
