Celvin Moniaga Sipahutar, Jakarta – Indonesia plans to position its easternmost region of Papua as a national hub for bioenergy production, part of a broader push to curb the country's heavy reliance on imported fuel and strengthen energy self-sufficiency.
Energy and Mineral Resources Minister Bahlil Lahadalia said Papua has strong potential to become a major producer of bio-based energy feedstock, particularly ethanol, which can be blended into gasoline to reduce fossil fuel consumption.
"I think Papua is one of the regions that can be developed as a producer of ethanol feedstock," Bahlil told reporters at the Presidential Palace in Jakarta on Tuesday.
The plan aligns with President Prabowo Subianto's directive to pursue energy self-sufficiency by maximizing domestic renewable resources, especially plant-based energy. Indonesia remains heavily dependent on imported gasoline, prompting the government to accelerate policies mandating ethanol blending in fuel.
Bahlil said the government is preparing to roll out an E10 mandate – requiring gasoline to contain 10 percent ethanol – starting in 2027. Officials are also studying higher blends such as E20 and E30 in the longer term to further reduce imports.
Ethanol feedstock can be sourced from a range of agricultural commodities that are abundant in Indonesia, including cassava, corn and sugarcane, Bahlil said. Papua, with its vast land availability, is seen as a key region to support large-scale cultivation.
Indonesia has already implemented biodiesel programs such as B40, which blends 40 percent palm oil-based fuel into diesel, and plans to increase the mandate to B50 by 2026. The higher blend will significantly raise demand for bioenergy raw materials, reinforcing the government's push to expand domestic production capacity.
President Prabowo has repeatedly highlighted Papua's potential not only for ethanol but also for palm oil-based biodiesel. Speaking to regional leaders from Papua, he said crops such as oil palm, cassava and sugarcane could help regions generate their own energy while cutting national fuel imports.
"We hope Papua can also plant oil palm so it can produce biofuel from palm oil," Prabowo said, adding that solar and hydropower should also be developed alongside agricultural-based energy.
Indonesia currently spends around Rp 500 trillion ($30 billion) a year on fuel imports, according to the president. He said cutting imports by just half could save roughly Rp 250 trillion annually, funds that could be redirected to regional development.
Prabowo said Indonesia aims to stop importing diesel starting next year, following the completion of the Balikpapan refinery upgrade in December 2025. Gasoline imports are targeted to be phased out within four years.
Supporting the ethanol push, the Agrarian Affairs and Spatial Planning Ministry has allocated more than 920,000 hectares of land nationwide, including in Papua, to support ethanol feedstock development. The move complements Indonesia's broader energy transition strategy, which seeks to boost economic resilience while reducing dependence on foreign energy supplies.
Source: https://jakartaglobe.id/business/indonesia-eyes-papua-as-national-bioenergy-hub-to-cut-fuel-import