Jakarta: Indonesia is planning to develop its easternmost region of Papua into a national centre for bioenergy production as part of wider efforts to reduce dependence on imported fuel and strengthen energy self-reliance, reports Jakarta Globe.ID.
Energy and Mineral Resources Minister Bahlil Lahadalia said Papua has strong potential to become a major source of bio-based energy raw materials, particularly ethanol, which can be blended with gasoline to cut fossil fuel use. He said the region’s natural resources and land availability make it suitable for large-scale development of ethanol feedstock.
The proposal is in line with President Prabowo Subianto’s directive to achieve energy self-sufficiency by making greater use of domestic renewable resources, especially those derived from agriculture. Indonesia remains heavily reliant on imported gasoline, prompting the government to speed up policies that promote ethanol blending.
Bahlil said the government is preparing to introduce an E10 mandate, which would require gasoline to contain 10 per cent ethanol, starting in 2027. Studies are also underway on higher blends such as E20 and E30 in the longer term to further curb fuel imports.
He said ethanol feedstock can be produced from crops widely grown in Indonesia, including cassava, corn and sugarcane. Papua, with its large tracts of available land, is expected to play a key role in supporting expanded cultivation.
Indonesia has already rolled out biodiesel programmes such as B40, which blends 40 per cent palm oil-based fuel into diesel, and plans to raise the mandate to B50 by 2026. The higher blend is expected to sharply increase demand for bioenergy raw materials and strengthen the push to expand domestic production.
President Prabowo has repeatedly pointed to Papua’s potential for both ethanol and palm oil-based biodiesel. In meetings with regional leaders, he said crops such as oil palm, cassava and sugarcane could help regions produce their own energy while reducing national fuel imports. He has also stressed the need to develop solar and hydropower alongside agriculture-based energy sources.
Indonesia currently spends about Rp 500 trillion a year on fuel imports. The president has said that cutting imports by half could save around Rp 250 trillion annually, funds that could be redirected towards regional development.
Prabowo said Indonesia aims to stop importing diesel starting next year following the completion of the Balikpapan refinery upgrade in December 2025, while gasoline imports are expected to be phased out within four years.
To support the ethanol programme, the Ministry of Agrarian Affairs and Spatial Planning has allocated more than 920,000 hectares of land across the country, including in Papua, for ethanol feedstock development. The initiative forms part of Indonesia’s broader energy transition strategy to improve economic resilience and reduce reliance on foreign energy supplies.
