Developing Biofuel-Based Road Transport Industry: Market Penetration Assessment of Biodiesel (B100) and Bioethanol (E100) as Road Transport Fuels in Indonesia

Alloysius Joko Purwanto and Dian Lutfiana
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Alloysius Joko Purwanto: Economic Research Institute for ASEAN and East Asia (ERIA)

No 2024-RPR-13 in Books from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: Indonesia aims to transition to a more balanced energy mix structure, targeting a renewable share of 23% by 2025 and 31% by 2050. One strategic approach to meet these goals involves promoting the use of biofuels in the road transport sector. This study assesses the potential advancement of various biofuel blends in Indonesia, considering diverse economic and energy market scenarios, as well as the techno-economic development of different biofuel types and associated road vehicle propulsion technologies. The study provides a framework for policy recommendations geared towards optimising the penetration level of biofuels up to 2040. Key principles within this framework include the consideration of economic and energy sector development, the imperative to achieve higher Euro standard levels in Indonesia's transport fuel, the pivotal role of financing strategies, and the ongoing progress of both biofuel and propulsion technology development.

Date: 2024
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