Government Pushes for Recognition of Palm Oil-Based Biodiesel Under IMO Decarbonization Framework

The Government, through the Ministry of Transportation, is strengthening its regulatory diplomacy efforts at the international level to ensure that palm oil-based biodiesel receives recognition under the decarbonization framework in global maritime sector that is currently being developed by the International Maritime Organization (“IMO”). This initiative is considered crucial to maintaining the continued implementation of the national biodiesel program while ensuring its compliance with applicable environmental standards in international maritime trade and transportation.

“The reason we support the establishment of a single global framework and unified rules applicable to all countries is to prevent the emergence of other schemes that could be detrimental, such as unilateral penalty mechanisms imposed on the grounds that a party is still using fossil fuels,” stated Head of the Sub-Directorate for Pollution Prevention, Ship Safety Management, and Marine Environmental Protection, Miftahul Hadi.

According to him, Indonesia is encouraging the adoption of a single global regulatory framework that provides legal certainty and equal treatment for all countries. In this context, the Government is also advocating for the recognition of the Life Cycle Assessment (“LCA”) or Well-to-Wake methodology as the basis for calculating fuel emissions. This approach is considered capable of providing a more comprehensive assessment of the carbon footprint of palm oil-based biodiesel compared to methods that only evaluate emissions at the point of fuel use.

In addition to actively participating in discussions within the Marine Environment Protection Committee (“MEPC”), Indonesia has also submitted technical documents to the GESAMP expert group to strengthen the scientific validation of the sustainability aspects of palm oil-based biodiesel. Strengthening this data foundation forms part of Indonesia’s preparations for the implementation of the Greenhouse Gas Fuel Intensity (“GFI”) standard, which is scheduled to take effect in October 2026.