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View all search resultsGovt may speed up biodiesel, ethanol fuel rollout as oil price soars
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Two excavators symbolically felled oil palms on Dec. 20, 2025, to mark the relocation of 228 families who owned some 600 hectares of land inside a national park, in Pelalawan regency, Riau. (Courtesy of Riau provincial administration./-)
T
he government may accelerate plans to expand the use of biofuel and bioethanol as soaring global oil prices triggered by the Middle East conflict raise concern over the cost of imported fossil fuels.
Energy and Mineral Resources Minister Bahlil Lahadalia said on Monday the ministry was considering speeding up the rollout of a 50 percent palm oil-based biodiesel blend (B50) and a gasoline mix containing 20 percent ethanol (E20).
“If fossil oil prices exceed US$100 per barrel, then these alternatives become cheaper,” Bahlil said on Monday, as quoted by Bisnis.com.
“We can increase the [bio content in the] diesel blend from the current B40 to B50, or introduce a mandatory ethanol blend for gasoline. These are among the steps we are considering.”
Read also: Pertamina vessels among 200 tankers stranded in Gulf
Indonesia, the world’s largest palm oil producer and exporter, delayed plans to increase its biodiesel mandate from the current B40 to B50 to the second half of this year from an earlier January target, while also planning to stop importing diesel starting this year.
Meanwhile, the government had planned the introduction of E20 gasoline in 2028.
