Indonesia's Biofuel Strategy Amid Electric Vehicle Transition
Indonesia is advancing its biofuel initiatives, targeting a shift to B50 biodiesel by July 2026 and expanding bioethanol use. This strategy aims to reduce fossil fuel dependency and facilitate a smoother transition to electric vehicles (EVs).
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Indonesia plans to implement B50 biodiesel, a 50% blend of solar and vegetable oil, by July 2026, with the current B40 in use. This shift is part of a broader strategy to reduce solar imports by increasing domestic production.
Additionally, bioethanol is being integrated into gasoline, starting with Pertamax Green, a 5% ethanol blend available since 2023, with future targets for E10 by 2028-2030 and E20 afterward. By the second half of 2026, private gas stations will be required to blend gasoline with 5% ethanol.
Major stakeholders like Gaikindo are prepared for the transition to B50 biodiesel. The biofuel initiative is seen as a transitional solution towards EV adoption, especially in regions lacking EV infrastructure. This dual approach may mitigate fossil fuel reliance while infrastructure for EVs is developed.
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