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View all search resultsAs geopolitical tensions expose Indonesia’s dependence on imported fuel, the government is accelerating its B50 biodiesel mandate to strengthen energy security. Yet the policy raises questions about feedstock availability, infrastructure readiness, fiscal costs and its potential impact on the palm oil industry, one of the country’s largest sources of export earnings.
As the Strait of Hormuz teeters on the edge of instability, Indonesia faces a high-stakes choice: remain shackled to volatile fossil fuel routes or embrace a nuclear future. This strategic pivot offers total energy sovereignty, but it requires the government to master a dangerous geopolitical balancing act and conquer decades of public fear over safety.
For Indonesia, which is deeply embedded in East Asian production networks and heavily exposed to Chinese trade and investment, a reciprocal trade agreement with the US could trigger chaotic and costly supply chain realignments.
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