Indonesia is expanding its bioenergy push with a new B50 biodiesel mandate and plans to add 0.61 GW of bioenergy capacity through co-firing, biomass plants, and biogas by 2029. State utility PLN EPI says the strategy cuts diesel imports and coal use, but the Institute for Essential Services Reform (IESR) warns the policy carries serious trade-offs. IESR points to rising crude palm oil demand that could push up cooking oil prices, strain food supply, and increase land-use pressure. The institute also notes that B50's economic case has weakened as global oil prices have eased and domestic refinery capacity has improved. IESR argues that Indonesia should not rely on biodiesel as a long-term decarbonization strategy. Its analysis shows that expanding to B60 could cut 88 million tons of CO2 by 2060, but that figure excludes emissions from land-use change. By comparison, large-scale electrification of transport could cut 210 million tons by 2060 when combined with vehicle age limits and stronger adoption policies. The article highlights a core tension in Indonesia's energy transition: using bioenergy for short-term energy security versus pursuing deeper, more durable emissions cuts through electrification and renewables.
