October 6, 2026 9:15 AM | kaoem@kaoemtelapak.org
Rationalising the Energy Mix and Biofuels in Indonesia
In a pivotal move towards energy transformation, Indonesia is set to revolutionise its biofuel governance, with a keen focus on palm oil as the primary feedstock for biodiesel. This strategic shift, while promising substantial economic benefits, also brings forth pressing environmental and social challenges.
The Indonesian government ambitiously aims for a 50% biodiesel blend (B50) by 2026, necessitating the use of 17.93 million tonnes of crude palm oil (CPO). This ambitious target could potentially expand palm oil plantations by over six million hectares, raising concerns about deforestation and agrarian conflicts.
To address these challenges, the document proposes several viable solutions. A moratorium on palm oil expansion is suggested, alongside efforts to boost productivity and promote community-based bioenergy development using alternative feedstocks. The emphasis is also placed on strengthening institutions to ensure greater transparency and accountability in biofuel management, while fostering village economic growth through BUMDes and cooperatives.
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