President Prabowo Subianto announced a major investment plan to develop facilities for processing used cooking oil and palm oil into aviation fuel (avtur). This initiative is part of efforts to reduce dependence on fossil energy by leveraging domestic resources and waste as high-value alternative fuels.
In addition, the government is emphasizing the acceleration of the energy transition through electrification and renewable energy development. With its abundant natural resources, Indonesia is positioned to withstand global energy crisis pressures while building long-term energy resilience based on innovation and downstream industrialization.
—Kontan, April 9, 2026
Government Targets Gradual Bioavtur Implementation from 2027 to 2030
Through the Ministry of Energy and Mineral Resources (ESDM), the government has set a roadmap for the gradual implementation of bioavtur until 2030. This will begin with a 1% blending mandate in 2027–2028, increasing to 5% in 2029–2030.
The policy will be mandatory for fuel business entities and initially implemented at major airports such as Soekarno-Hatta and Ngurah Rai. This step is part of a broader strategy to strengthen energy independence, increase the share of renewable energy, and reduce emissions in the aviation sector.
—Bisnis, April 10, 2026
President Prabowo Subianto Targets Closure of 13 Diesel Power Plants to Reduce Fuel Imports
President Prabowo Subianto aims to shut down 13 diesel power plants (PLTD) as part of the national energy transition strategy. This policy is projected to reduce fuel consumption by around 200,000 barrels per day, equivalent to 20% of Indonesia’s current fuel imports.
This move is part of efforts to reduce dependence on fossil fuels, supported by the acceleration of the national electrification program up to 100 GW.
—Kontan, April 9, 2026
B50 Implementation Projected to Save Up to IDR 48 Trillion in Subsidies
The government targets the implementation of B50 biodiesel starting July 1, 2026, which is expected to save up to IDR 48 trillion annually in energy subsidies and reduce fuel imports by approximately 4 million kiloliters.
This policy is part of a broader strategy to strengthen national energy security while reducing dependence on fossil fuels amid global energy price volatility. Beyond fiscal benefits, B50 also supports sustainability by lowering emissions and increasing domestic absorption of palm oil.
—Kontan, April 9, 2026
President Prabowo Subianto Targets Mass Production of Indonesian Electric Sedans by 2028
President Prabowo Subianto targets Indonesia to begin mass production of electric sedans by 2028 as part of accelerating industrialization and energy transition.
Currently, electric vehicle development has started with buses and trucks, with domestic production capacity continuing to grow. The government is also pushing to increase local content (TKDN) from around 40% to 60–80% to strengthen the national industrial ecosystem.
—Kontan, April 9, 2026
European Automotive Industry Eyes Defense Sector
European automotive companies are increasingly viewing the defense sector as a new growth driver amid weak EV demand, rising competition from Chinese manufacturers, and higher financing costs.
Several companies are considering reallocating part of their automotive manufacturing capacity to support military component production. This trend is reflected in plans by Rheinmetall to convert automotive plants into defense production facilities.
—CNBC Indonesia, April 5, 2026
European Banks Begin Entering the Defense Sector
Banks and investors in Europe are increasingly engaging in the defense sector, as seen in their participation in dedicated clusters at the Eurosatory exhibition.
This reflects the growing linkage between financial institutions and the defense industry amid accelerated rearmament and investment in defense technology. Support is further reinforced by European Union policies such as the European Defence Industry Programme (€1.5 billion) and plans by the European Investment Bank to expand defense sector financing.
—Table Briefing, April 10, 2026
China’s Car Exports Surge Amid Global Disruption
China’s car exports surged 73.7% year-on-year in March 2026, demonstrating strong momentum in the automotive and EV industries despite geopolitical disruptions in the Middle East.
This growth is driven by aggressive global market expansion and competitive pressures in the domestic market. Oil price volatility has further enhanced the competitiveness of China’s new energy vehicles (EVs), offering a more cost-efficient alternative to fossil-fuel vehicles.
—The Korea Times & Invezz, April 9, 2026
Danantara Establishes Waste-to-Energy Holding to Accelerate Projects
The Indonesian Investment Authority (BPI) Danantara has established PT Daya Energi Bersih Nusantara (Denera) as a holding company for waste-to-energy (PSEL) projects.
This initiative aims to consolidate previously fragmented projects that often faced implementation challenges. Through this holding structure, the government seeks to accelerate project development, improve coordination and efficiency, and significantly contribute to waste management and renewable energy-based electricity generation.
—Kontan, April 10, 2026
Danantara Consolidates SOE Asset Managers, Managing IDR 132 Trillion in Assets
PT Danantara Asset Management has executed the consolidation of state-owned asset managers through acquisitions of subsidiaries from Bank Rakyat Indonesia, Bank Mandiri, and Bank Negara Indonesia.
This move aims to establish a large-scale asset management entity capable of competing regionally. The consolidated assets under management (AUM) reach approximately IDR 132.09 trillion, or 18.4% of the industry total.
With this integration, Danantara is expected to improve asset management efficiency, strengthen the competitiveness of the national financial industry, and serve as a strategic investment platform to mobilize large-scale capital.
—Kontan, April 6, 2026
President Prabowo Subianto Pushes Special Financial Center to Attract Global Investment
President Prabowo Subianto revealed plans to establish a Special Financial Center as a strategy to attract global investment amid geopolitical uncertainty.
The initiative aims to position Indonesia as a safe haven for investors, with Bali being considered as one of the potential locations. The policy is driven by shifting global capital flows due to geopolitical conflicts, as investors increasingly seek stable markets outside conflict zones.
—Kontan, April 8, 2026