The Downstream Oil and Gas Regulatory Agency (BPH Migas) reported that the implementation of B35 biodiesel saved IDR 120.54 trillion in foreign exchange throughout 2023. The program has significantly impacted Indonesia’s economy by reducing energy import dependence and fostering energy independence. According to BPH Migas Secretary Patuan Alfon Simanjuntak, the B35 mandate, enforced since August 2023, aligns with President Prabowo’s vision. By 2025, the government aims to advance to B40, further enhancing energy independence. "We expect this step to strengthen our national energy resilience," Alfon stated at the BPH Migas office on Friday (6/12).
To support the energy transition, the government plans to expand renewable energy infrastructure and promote energy efficiency innovations. Alfon highlighted the need for fiscal incentives, clean energy subsidies, and carbon tax policies to optimize renewable energy adoption. Additionally, he called for energy consumption reforms across industries, transportation, and households, emphasizing increased natural gas utilization. Despite progress in renewable energy, Alfon projected fossil fuels will still account for 20% of the energy mix by 2050, with natural gas contributing 24%. The Ministry of Energy and Mineral Resources (ESDM) is preparing for the launch of B40 biodiesel, scheduled to begin on January 1, 2025.
