Indonesia: Biofuels Annual

  |   Attaché Report (GAIN)   |   ID2025-0029

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Office of Agricultural Affairs, Jakarta   |   (011-62-21) 3435-9161

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Indonesia: Biofuels Annual
Indonesia’s aggressive biodiesel blending mandate rising from 35 percent to 40 percent in early 2025 has resulted in no exports due to limited production capacity. Expansion to B50 will require both significant subsidies and additional production capacity. The bioethanol market is projected for small growth in 2025, with E5 sales expected to remain limited in 2025 as the majority of the gasoline market is captured by subsidized fuel. In May and June 2025, the Government of Indonesia issued two conflicting regulations on biofuels, with one appearing to block biofuel imports while the other simplifies import processes. It remains unclear how these regulatory changes relate to the bilateral trade deal announced on July 22, 2025.
East Asia and the Pacific, Indonesia
Biofuels

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