Indonesia advances renewable energy via biofuels and geothermal auctions

Indonesia is advancing its renewable energy agenda through several key initiatives. The Ministry of Energy and Mineral Resources (ESDM) has launched a mandatory 50% biodiesel blend (B50), positioning the country as a global leader in biofuels compared to European and regional neighbors. Additionally, the government is exploring a 20% bioethanol (E20) mandate, though implementation depends on feedstock availability and the development of approximately 20 new production plants.

In the geothermal sector, the ESDM has opened auctions for 14 work areas with a target capacity of 732 MW to boost the national renewable energy mix. However, a planned 55 MW geothermal project at Gunung Ungaran has faced significant local opposition. Over 7,000 residents signed a petition to relocate the project, citing risks to the historic Candi Gedong Songo Hindu temple complex and environmental concerns. While the ESDM maintains that drilling sites will not overlap with protected heritage areas, environmental groups like Walhi argue the project lacks urgency due to a current electricity surplus in the Central Java and Yogyakarta regions.