Biodiesel Key to Indonesia’s Energy Security, Task Force Says

The Energy Security Task Force said Friday that palm oil-based biodiesel would be key to Indonesia’s goal of making sure that its population can have uninterrupted access to affordable energy.

President Prabowo Subianto earlier this month established a special task force dedicated to promoting national energy security and the domestic processing of the country’s natural resources.

The task force’s head Bahlil Lahadalia briefed reporters on how the government planned on achieving energy security. Indonesia is increasing its palm oil-based content share of its biodiesel from 35 percent to 40 percent this year in a policy better known as B40. The Southeast Asian country plans to gradually increase the palm oil content in this renewable fuel in the future.

“Aside from lifting more oil, we want to use palm oil-based biodiesel. We are already implementing the B40 policy in 2025, and we will implement the B50 mandate in the future,” Bahlil, who is also the energy minister, said in Jakarta, as reported by the state news agency Antara.

Biodiesel comes from the chemical reaction of methanol and vegetable oils or animal fats used as a replacement for diesel fuel. According to Bahlil, Indonesia needs approximately 2.3 million tons of methanol for its biodiesel program.

Bahlil said that Prabowo had instructed the methanol production to take place in Indonesia. This way, Indonesia can create greater added value to its economy.

Bahlil had previously revealed Indonesia’s plans to build a $1.2 billion methanol plant in the East Javan regency of Bojonegoro. This facility is expected to produce 800,000 tons of methanol each year.

“So yes, we will have that [methanol] production facility in Bojonegoro. The facility will use gas [as its raw material],” Bahlil said.

The government has also prepared sugarcane plantation programs in Java and Papua for the country’s ethanol production. Ethanol is also used in biodiesel production, according to Bahlil.

Tags: Indonesia, biodiesel, palm oil, B50