Climate Policy Initiative (CPI) Indonesia, with support from the Packard Foundation, developed analytical work to support the Ministry of Energy and Mineral Resources (MEMR) and key stakeholders on sustainable biofuels. This analysis served as a starting point for the government’s longer-term efforts to develop an effective biofuels policy framework. The analysis was presented at the Investment Forum “Time to Act: Accelerate the Implementation of Renewable Energy and Energy Conservation” at EBTKE INDO CoNEx 2015 in Jakarta Convention Center from 19-21 August.

For the event, CPI prepared a series of working papers that looked at the role of sustainable biofuels in Indonesia’s energy and land use sectors. The papers aimed to highlight key issues that decision makers must take into account when developing policies and instruments within the biofuel sector to transform Indonesia’s palm oil sector and achieve energy security under sustainable framework. The first paper reviewed fiscal measures that can help investors balance their risks and rewards. The second looked at governance of the Crude Palm Oil (CPO) Fund. And finally, the third paper looked at how various incentives can affect the palm oil supply chain, and thus impact how Indonesia can meet its biofuel needs sustainably.

In collaboration with the Asia Group Advisors, CPI also convened a panel discussion on biofuel sustainability with key participants at the Investment Forum event, which included representatives from Palm Oil Fund Management Agency/CPO Fund, palm oil plantation company Golden Agri Resources (GAR), the Indonesian Palm Oil Pledge Secretariat (IPOP Secretariat), global research and advocacy organization World Resources Institute (WRI), and state-owned energy company PT. Pertamina. The series of working papers on Sustainable Biofuel in Indonesia served as a companion to the panel discussion.

The discussion during the panel identified several key issues that must be addressed to realize sustainable biodiesel in Indonesia, such as: consistent and mutual commitment amongst numerous stakeholders, production of sustainable palm oil feedstock, the economic price of biofuel, and improvement in infrastructure and logistics.

To request a copy of the working papers, please contact CPI senior analyst Muhammad Ery Wijaya.