[REVISION HISTORY]

Indonesia fuel policy and renewable energy transition

Updated 13 times since CLSTR started tracking revisions of this situation.

What changed

2026-09-08 12:43 UTC → 2026-09-10 07:21 UTC · added ~~removed~~

Indonesia continues to advance its renewable energy agenda, specifically through the mandatory B50 biodiesel blend implemented on July 1, 2026. ~~This milestone~~ The Ministry of Energy and Mineral Resources (ESDM) confirmed that B50 has ~~made Indonesia the first country to implement~~ successfully passed intensive testing, including 1,000-hour mining trials and vehicle tests reaching 50,000 kilometers, proving its safety and durability. Building on this success, President Prabowo Subianto has identified a ~~50%~~ B60 biodiesel ~~blend, drawing international interest from entities in Japan and Europe studying~~ blend as the ~~program’s regulatory and technical frameworks. Field monitoring by BPH Migas across Java, Sumatra, and Kalimantan indicates~~ next phase of the ~~rollout is running smoothly,~~ program, with ~~no reported engine damage to private vehicles, buses, or logistics trucks. PT Kereta Api Indonesia (Persero) has~~ evaluations underway regarding crude palm oil (CPO) supplies and production capacity for a potential 2027 rollout. The Energy Ministry is also ~~transitioned~~ considering the inclusion of 10% hydrotreated vegetable oil (HVO), though its ~~locomotives and power cars to B50 to increase energy efficiency and reduce carbon emissions. To maintain energy security, BPH Migas continues to urge businesses~~ higher cost relative to ~~upgrade Fatty Acid Methyl Ester~~ fatty acid methyl ester (FAME) ~~storage to mitigate~~ remains a factor. Economically, the ~~substance’s hygroscopic nature. Beyond biodiesel,~~ Kadin Indonesia Institute estimates B50 could reduce diesel imports by approximately 18 million kiloliters, potentially saving Rp170 trillion in foreign exchange reserves. Regarding bioethanol, the ~~Ministry~~ government aims for a phased rollout of ~~Energy and Mineral Resources (ESDM) is exploring~~ an E20 blend, moving from 5% in 2026 to 10% in 2027, with a ~~potential~~ target of 20% ~~bioethanol (E20) mandate. The government is planning~~ by 2028. To support this, officials plan to revise Presidential Regulation Number 40 of 2023 to secure feedstock ~~supplies~~ and encourage ~~investment~~ plant construction. Consumer interest appears to be growing, as Pertamina Patra Niaga reported a 267% surge in ~~production plants. Additionally,~~ sales of Pertamax Green 95, a fuel containing 5% bioethanol. In the broader sector, PT PLN Energi Primer Indonesia ~~(PLN EPI) has signed agreements~~ continues to develop BioCNG and green hydrogen ~~using~~ from biomass, such as organic waste and livestock waste. In the broader renewable sector, the government has opened auctions for 14 geothermal work areas aiming for a 732 MW capacity. However, a 55 MW project at Gunung Ungaran has met significant local resistance, with over 7,000 residents signing a petition to relocate the site due to environmental concerns and potential risks to the Candi Gedong Songo Hindu temple complex. While the ESDM asserts drilling will not overlap with protected heritage areas, environmental groups like Walhi have questioned the project’s urgency given the existing electricity surplus in Central Java and Yogyakarta. while PT Perusahaan Gas Negara (PGN) is promoting natural gas efficiency through its City Gas Tour 2026.

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