INDEF: Biofuel Can be a Bridge of Transition to EV Use

JAKARTA - The Institute for Development of Economics and Finance (INDEF) assesses biofuel policies, such as biodiesel and bioethanol, can be a transition bridge to reduce dependence on imported fuel oil (BBM), before mass-producing the use of electric vehicles (EV).

"Biofuel, in my opinion, can even become a bridging fuel before going to EVs," said Head of the Center of Industry, Trade, and Investment INDEF Andry Satrio Nugroho at an event entitled Towards the Electrification of Vehicles Without Leaking Budgets in Jakarta, quoted by Antara, Friday, April 24.

Andry assessed that the role of biofuels as a transition bridge for energy from fossil fuels will be felt in the Backward, Frontier, and Outer Regions (3T), which have not been touched by the supporting infrastructure for electric vehicles.

Therefore, he continued, while the infrastructure for electric vehicles is being built, the public can reduce their dependence on fossil fuels by switching to biofuels.

"Because the segment is different according to me. In some regions it is still needed (fuel), while we can wait for the infrastructure from the EV to be created in that region. I think we need to encourage it (biofuel and EV) side by side," said Andry.

The Ministry of Energy and Mineral Resources (ESDM) conveyed that the mandatory biodiesel policy of 50 or B50 will be implemented simultaneously for all sectors starting on July 1, 2026.

Director General of New and Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources, Eniya Listiani Dewi, said that B50 is still in the road test phase which is targeted to be completed in May 2026 for the automotive sector. The road test phase, said Eniya, has been taking place since December 9, 2025 for 9 units of vehicles.

After the road test, the Ministry of Energy and Mineral Resources will check the condition of the engine.

Road tests and engine checks for the automotive sector are targeted to be completed by June 2026. Eniya said the interim results of the B50 test showed that the quality of B50 fuel had met the required specifications.