Indonesia’s Bold Strategy to End Fuel Imports Through EVs and Biojet Fuel
Indonesia is aggressively pivoting its energy landscape to eliminate dependence on fuel imports within the next three years. Led by President Prabowo Subianto, the government is implementing a dual-track strategy: scaling up national electric vehicle (EV) production and investing heavily in bio-aviation fuel (bioavtur) refineries.
- EV Ambitions: Target for large-scale production of electric sedans by 2028.
- Biofuel Shift: Development of refineries to convert palm oil and used cooking oil into jet fuel.
- Energy Security: Plan to shut down 13 diesel-powered electricity plants to save 200,000 barrels of diesel daily.
- Diversification: Exploring biofuels derived from cassava and corn as alternatives to gasoline and diesel.
Accelerating the Electric Vehicle Transition
The Indonesian government is not just encouraging EV adoption; it’s building the industrial infrastructure to support it. During the inauguration of the PT VKTR Sakti Industries plant in Magelang on April 9, 2026, President Prabowo Subianto emphasized that the state is currently establishing a dedicated company to realize national EV production.
A primary goal of this initiative is the move toward large-scale production of electric sedans by 2028. To support this transition, the government is also formulating novel incentive packages for both electric cars and two-wheelers to make green mobility more accessible to the public.
The Shift to Bio-Based Aviation Fuel
To address the high energy demands of the aviation sector, Indonesia is investing in processing centers and refineries for bioavtur. By utilizing the country’s abundant natural resources, the government aims to convert the following materials into jet fuel:
- Oil Palm: Leveraging Indonesia’s massive existing palm oil industry.
- Used Cooking Oil: Converting waste oils into sustainable aviation fuel.
This shift is part of a broader move toward new and renewable energy (EBT) to enhance national security and energy self-sufficiency.
Broadening the Biofuel Horizon
Beyond aviation and EVs, President Prabowo is promoting a diversified approach to biofuels to replace traditional diesel and gasoline. This includes the development of fuels derived from cassava and corn, as well as utilizing coal to produce synthetic diesel and gasoline.
According to the President, these independent energy sources provide a sturdy economic foundation that protects Indonesia from global energy crises and war-induced market volatility.
Impact on National Energy Independence
The overarching goal is to end the reliance on energy imports. A critical part of this strategy involves reducing internal waste; the government plans to shut down 13 diesel-powered electricity plants. This move alone is expected to save up to 200,000 barrels of diesel fuel per day.
FAQ: Indonesia’s Energy Transition
When does Indonesia aim to start large-scale electric sedan production?
President Prabowo Subianto has expressed hope that large-scale production will begin in 2028.
What materials will be used for bio-aviation fuel?
The refineries will focus on converting palm oil and used cooking oil into bioavtur.
How will the government reduce diesel consumption?
By shutting down 13 diesel-powered electricity plants, saving approximately 200,000 barrels of fuel daily.
As Indonesia integrates these renewable energy sources and domestic manufacturing capabilities, the country is positioning itself as a leader in the global transition toward sustainable energy and industrial self-reliance.
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