Indonesia is planning to develop Papua into a national center for bioenergy, supporting energy independence efforts. The government aims to reduce reliance on imported fuels by expanding domestic renewable energy sources. Papua’s natural resources and land availability make it ideal for large-scale bioenergy crop cultivation.
Energy and Mineral Resources Minister Bahlil Lahadalia stated that Papua has strong potential to become a major source of bio-based energy raw materials, especially ethanol. Ethanol can be blended with gasoline to lower fossil fuel consumption and improve energy sustainability across Indonesia. The proposal aligns with President Prabowo Subianto’s directive to achieve energy self-sufficiency using local renewable resources.
The government is preparing to implement an E10 mandate, requiring gasoline to contain 10 percent ethanol, starting in 2027. Longer-term plans include studying higher ethanol blends such as E20 and E30 to further cut fuel imports. Ethanol feedstock can be produced from crops like cassava, corn, and sugarcane, which are widely cultivated in Indonesia. Papua’s vast land area is expected to support expanded cultivation efforts.
Indonesia has already launched biodiesel programs such as B40, blending 40 percent palm oil-based fuel into diesel. The government plans to increase this to B50 by 2026, boosting demand for bioenergy raw materials. President Prabowo has highlighted Papua’s potential for both ethanol and palm oil-based biodiesel development. Crops like oil palm, cassava, and sugarcane are key to regional energy self-sufficiency.
Indonesia currently spends about Rp 500 trillion annually on fuel imports. The president aims to cut imports by half, saving around Rp 250 trillion each year. He also plans to phase out diesel imports next year and gasoline within four years, after refinery upgrades are complete.
