President Prabowo Subianto has directed Indonesia's National Research and Innovation Agency (BRIN) to assess the feasibility and economic impact of mandating 100% biofuel blends for domestic transport.
BRIN head Arif Satria confirmed the presidential request, which targets the implementation of B100 biodiesel and E100 ethanol across the archipelago.
The directive marks a significant escalation in Jakarta's biofuel policy, moving beyond the current B35 biodiesel mandate.
A shift to B100 would drastically increase domestic demand for crude palm oil (CPO), the primary feedstock for Indonesian biodiesel.
This structural change could tighten global palm oil supplies, providing a potential floor for CPO prices and exerting upward pressure on related agricultural commodities.
The move aligns with broader geopolitical and energy security themes.