Building a Sustainable State Economy from New and Renewable Energy

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The maximum utilization of new and renewable energy (EBT) not only has a good impact on the environment, but also benefits Indonesia in the economic sector. Indonesia’s economy can grow sustainably and last for centuries to come. 

Sustainable use of biofuels from oil palm plants and other biofuels raw materials is effective in saving foreign exchange, increasing the added value of Crude Palm Oil (CPO) and absorbing labor. If it’s optimized and carried out in a sustainable manner, the use of biofuels can accelerate the national economy. 

Based on the data from Monitoring and Evaluation (Monev) conducted by the Directorate of Bioenergy, Directorate General of New Renewable Energy and Energy Conservation, Ministry of Energy and Mineral Resources of the Republic of Indonesia; the benefits of the implemented B20 and B30 biofuels circa 2018-2020 in Indonesia are increased from time to time.

Benefits Value of Program Benefits
B20 Year 2018 B20 Year 2019 B30 Year 2020
Foreign exchange savings Rp26,67 trillion Rp43,819 trillion Rp38,31 trillion
Increased value added (CPO to biodiesel) Rp5,78 trillion Rp9,54 trillion Rp10,36 trillion
Employment On-farm: 478.325 people

Off-farm: 3.609 people

On-farm: 828.488 people

Off-farm: 6.252 people

On-farm: 1.057.623 people

Off-farm: 7.981 people


Not only that, the positive impact of implementing the use of biofuels is expected to increase farmers’ income. Through the mandatory program (B30 and later generations), there will be an increase in domestic demand for Crude Palm Oil. This can provide a multiplier effect for more than 16.5 million oil palm farmers and other workers across the industry from upstream to downstream in Indonesia.

The development of biofuels in Indonesia greatly benefits from the availability of raw materials in the form of abundant renewable natural resources. One of the most reliable raw materials for biofuels is palm oil. As long as we can protect these natural resources properly, biofuels can continue to be produced and reduce our dependence on fuel oil.

This of course brings optimism to Indonesia. If we can continue to develop and utilize domestic biofuels, the Indonesia economy will run well and improve consistently and sustainably.