The Ministry of Energy and Mineral Resources (ESDM) is intensifying efforts to accelerate biodiesel production in Merauke, South Papua, aimed at meeting domestic energy needs. 

In a recent update, Deputy ESDM minister, Yuliot Tanjung, shared that the biodiesel plant in Merauke is expected to commence operations by 2027.

"We are currently consolidating efforts to fast-track the development of biodiesel facility in Merauke," Tanjung said on Friday, August 8, 2025.

He emphasized that the project is crucial for the country’s energy transition strategy and is aligned with the government's commitment to boosting renewable energy production.

Regarding the B-50 biodiesel program, Tanjung highlighted the ongoing evaluation of B-40 implementation this year, noting that the government is optimistic about moving towards B-50 next year.

"The B-50 implementation is part of our long-term strategy to gradually increase the use of biofuels in Indonesia’s energy mix," he said.

The biodiesel initiative is an integral component of Indonesia’s broader energy policy, aimed at reducing dependence on fossil fuels and supporting sustainable growth.

Regulatory reforms

Tanjung revealed that the ESDM ministry is pursuing substantial reforms in the governance of several critical sectors, following discussions with the Minister of Law on Thursday, August 7, 2025. The meeting focused on the need to improve regulations across various subsectors within the ESDM inistry, including renewable energy, oil and gas, and the governance of mineral and coal resources.

He emphasized that these changes are necessary to address the complexities of Indonesia's energy and natural resources management.

"We are currently working on improvements in governance, especially in sectors like renewable energy and mining, which require updated regulations to streamline operations and enhance efficiency," Tanjung said.

As part of the ongoing reforms, the ministry aims to improve data management systems to ensure better oversight and more effective implementation of energy policies. This effort is in line with Indonesia's long-term strategy to strengthen energy security and promote sustainable practices in the energy sector.