The Minister of Energy and Mineral Resources Prepares Derivative Decree of the Minister on Biofuel Concession

The Ministry of Energy and Mineral Resources (Energi dan Sumber Daya Mineral– “ ESDM ”) will establish several derivative regulations of Regulation of the Minister of ESDM No. 4 of 2025 on Biofuel Concession (“ Permen ESDM 4/2025 ”), which was established on 19 February 2025.

Eniya Listiani Dewi, Director-General of New, Renewable Energy and Energy Conservation (Energi Baru Terbarukan dan Konservasi Energi– “ EBTKE ”), stated that the forthcoming derivative ministerial decree (“ Kepmen ”) will include a number of technical provisions, including the mixing percentages for each type of Biofuel (Bahan Bakar Nabati– “ BBN ”) as stipulated in said Regulation of the Minister. The implementation through a Kepmen is chosen to ensure the realization mixing percentage target within a specified timeframe.

"Now, due to such experiences, the percentages will just need to be set through a Kepmen," said Eniya

In addition to the mixing percentages with bio-based components, other provisions that will be regulated in the derivative Kepmen of Permen ESDM 4/2025 include: 1) Provisions on other types of BBN, other than B100, E100, D100, and J100; 2) Stages of BBN utilization in relation to the mandatory mixing of BBN; 3) BBN market index price; 4) Formula for calculation of BBN market index price; and 5) Guidelines for technical inspections and safety inspections.