Biodiesel policy (Regulation No. 12/2015) on Provision, Utilization and Trading of Biofuels as Other Fuels

Source: International Energy Agency
Last updated: 19 May 2023

In 2015, the Indonesian Government under the Ministry of Energy and Mineral Resource amended 2008's regulation on provision, utilisation, and administration of biofuel as other fuels. The amended regulation aims to decrease petroleum import bills and boost domestic palm oil consumption. The Government set a blending target at 30% for fatty acid methyl ester (FAME), meaning that biodiesel had to be blended with 30% FAME made out of palm oil.
Indonesia successfully implemented its biodiesel policy in December 2019, in contrast with its bioethanol regulations which have not been enforced yet. The government had plans to increase the blending target of biodiesel to 40% by mid-2021 (B40) - although delayed due to a lack of funding capacities. 


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