Since the last few years, biodiesel has been predicted as a vegetable-based fuel that can help Indonesia to escape its dependence on fossil fuels and contribute to reducing greenhouse gas (GHG) emissions. Moreover, in a state speech in 2019, President Joko Widodo emphasized that in the future, the use of biodiesel will reach B100. Given the large impact and long business chain in the biodiesel industry, from palm oil farmers to public consumers, the implementation of national biodiesel program need special attention from society.
In addition to having a large economic impact on Indonesia, biodiesel is also included in the category of renewable energy that can be used to encourage the fulfillment of Indonesia’s renewable energy mix target of 23% by 2025, as mandated in the National Energy Policy (Government Regulation 79/2014). The problem is, sustainability standards that applies in Indonesia today do not cover the entire biodiesel business chain. The “renewable energy” diction in biodiesel will not be perfect if it is not supported by sustainability standards that covers social, economic and environmental aspects that applies from upstream to downstream.
Coaction Indonesia, together with the Civil Society Coalition for Biodiesel recommends policies that need to be implemented by the government. This policy paper discusses policies that need to be emphasized and new policies that need to be addressed to achieve sustainable biodiesel industry. Our hope is that by emphasizing and implementing the policies contained in this policy paper, the benefits of the biodiesel program for palm oil farmers, environmental conservation, and the availability of palm oil supplies can be maintained.
