Jakarta: Indonesia is strengthening bioenergy as a key part of its energy transition strategy, with state-owned PLN Energi Primer Indonesia (PLN EPI) promoting biomass, biodiesel, biomethane and waste-to-energy projects to improve energy security and reduce dependence on fossil fuels.
Speaking at the ReEnergize Summit 2026 at the University of Indonesia, PLN EPI Biomass Director Hokkop Situngkir said Indonesia has significant bioenergy resources from plantations, agriculture, forestry and urban waste that can support the country’s decarbonisation goals. He said greater collaboration among stakeholders is needed to fully utilise this potential, tanahair reported.
According to PLN EPI, Indonesia has an estimated biomass potential of 83.4 million tonnes annually, mainly in Sumatra, Kalimantan and Java. Under the government’s 2025-2029 Electricity Supply Plan (RUPTL), bioenergy is expected to add 0.61 gigawatts (GW) of power generation through biomass co-firing, biomass power plants and biogas projects.
Situngkir said most of the country’s diesel power plants have already adopted B40 biodiesel, while coal-fired power plants have started co-firing biomass to reduce coal consumption.
He said the energy transition should support cleaner energy while maintaining affordability, energy security and economic competitiveness.
However, Indonesia’s decision to expand its biodiesel blending programme to B50 has drawn concerns from energy analysts.
A day before the B50 mandate came into effect on July 1, the Institute for Essential Services Reform (IESR) urged the government to reassess the economic and environmental implications of the policy.
IESR Chief Executive Officer Fabby Tumiwa said biodiesel blending could help reduce diesel imports in the short term, particularly during supply disruptions, but should not become the country’s primary long-term energy transition strategy.
He said the government should evaluate the B50 programme not only for its impact on reducing fuel imports but also for its effects on production costs, feedstock availability, food prices, smallholder farmers and the environment.
According to IESR, higher demand for crude palm oil (CPO) to produce B50 biodiesel could reduce supplies for the food sector, increase cooking oil prices, add inflationary pressure and lead to greater demand for agricultural land.
The institute also said the economic benefits of the B50 programme may have declined as global oil prices and import risks have eased, while improvements in domestic refining capacity, including the Balikpapan refinery, have strengthened fuel security. At the same time, higher CPO prices could increase the government’s biodiesel subsidy burden.
IESR estimates that expanding biodiesel blending to B60 could reduce carbon dioxide emissions by around 88 million tonnes by 2060, excluding emissions from land-use changes. However, it said greater emission reductions could be achieved through wider adoption of battery electric vehicles.
The institute projected that electric vehicles could reduce emissions by 46 million tonnes by 2060, with reductions rising to 210 million tonnes when combined with vehicle retirement policies and stronger adoption measures.
IESR said Indonesia’s long-term transport decarbonisation strategy should focus on expanding electric vehicles, improving public transport, strengthening fuel efficiency standards and increasing renewable energy deployment, while using biodiesel as part of a broader energy transition strategy.
The debate reflects Indonesia’s effort to balance immediate energy security needs with its long-term climate, economic and environmental objectives as it expands the role of bioenergy in its energy mix.
