3.1.2. Indonesia

Indonesia is abundant in biomass, typically oil palm and *Jatropha* for biodiesel as well as cassava and sugar cane for bioethanol [86]. In 2006, the government of Indonesia announced the Indonesia Presidential Regulation no.5, also known as the National Energy Policy (NEP), to include biofuel as one of its RE sources. The NEP aimed to have biofuel contributing more than 5% to the national energy consumption by the year 2025 [87]. The Indonesia government also introduced volumetric utilisation target to have 10–20% of diesel and petrol consumption to be replaced by biodiesel and bioethanol [86]. In 2008, the Ministry of Energy and Mineral Resource Regulation (MEMR) No.32 introduced mandatory biofuel utilisation in transportation, industry, commercial and electricity. In 2013, the MEMR No.25 expanded the biodiesel utilisation to public service obligation (PSO), non-PSO, industry and electricity [87]. Based on the Government Regulation No 70/2014 on National Energy Policy and the Presidential Regulation No 22/2017 on General Plan of National Energy, Indonesia is aiming to increase the biofuel share up to 23% of its RE mix by 2025 [88].

For the use of biodiesel, the government has expanded the use of B20 to all sectors, including both PSO and non-PSO. The Indonesia government has launched the highest mandate blend of B30 around the globe in December 2019, where it is expected to save USD 4.5 <sup>×</sup> 106 annually on fossil fuel import for the country [89]. The government is currently on its way to implement B30 by 2020 for the transportation sector and B40 for large sectors such as railways. For bioethanol, the government targets to have a mandated blend of E5 for PSO and E10 for non-PSO from the current E2 in 2020 then expand to E20 for all sectors in 2025 [88].
