InfoSAWIT, DEPOK — Palm oil is playing an increasingly strategic role in Indonesia’s National Energy Policy, particularly as a pillar of energy transition and supply security, according to National Energy Council (DEN) member Mohamad Fadhil Hasan.

Speaking at the Workshop for Journalists on the 2026 Palm Biodiesel Program, attended by InfoSAWIT on Thursday (February 5, 2026), Fadhil outlined DEN’s mandate, which includes formulating national energy policy, setting the National Energy Master Plan (RUEN), managing energy crisis responses, and overseeing cross-sector policy implementation.

Why Government Regulation No. 40/2025 Matters

Fadhil described Government Regulation (PP) No. 40/2025 on National Energy Policy—replacing PP No. 79/2014—as a critical response to rapidly changing domestic and global conditions. These include declining domestic oil production, rising fuel imports, low renewable energy utilisation, LPG import dependence, coal export pressures, and fragmented gas and electricity infrastructure.

Energy policy, he said, is central to achieving Indonesia’s emissions reduction targets and Net Zero Emissions by 2060.

New Policy Direction

Under PP 40/2025, Indonesia targets a renewable energy mix of 19–23 percent by 2030, rising to 70–72 percent by 2060. The regulation prioritises renewable energy, minimises gasoline use, positions gas as a transition fuel, and considers nuclear as a decarbonisation option.

Palm-based bioenergy, Fadhil stressed, is one of the key pillars supporting energy resilience while advancing national decarbonisation goals. (T2)