Policies

Provision and Utilization of Biofuel (Presidential Instruction No. 1/2006)

Source: JOIN IEA/IRENA Policy and Measures Database
Last updated: 19 March 2015

The Presidential Instruction No. 1/2006 on Biofuel Supply and Utilization established the framework for coordination among ministries to promote the supply and use of biofuel. It designates the responsibility of ministries on formulating and implementing policies, including incentives, tariffs and trading systems, as well as standards and procedures for cultivation methods, processing, quality testing, the supply and distribution of biofuel, and the provision of land and the development of research and technology.

Based on this instruction, the Ministry of Agriculture is responsible for:

  • encouraging the supply of biofuel;
  • implementing the extension program for biofuel;
  • facilitating the provision of seed and seedling plants for biofuel; and
  • integrating the development and post-harvest plants for biofuel. 

To avoid the trade-off of land for food and bioenergy, the development of bioenergy should be directed to use unutilized lands which are available about 23.201 million hectares; and use abandoned land of about 14.9 million hectares (in 2009).

As a result, ensuring the sustainable food and bioenergy production should be followed by the steps of: (1) identifying the trade-off in land allocation for food and bioenergy purposes; (2) conducting the study on economic opportunity cost of land especially in terms of relationships of social cost and land degradation as well as food security and bioenergy.

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