By Dominikus
The Indonesian Mining Services Association (ASPINDO) has warned that the country’s current biodiesel roadmap may not be sufficient to support the future energy demands of mining operations, and is urging policymakers to accelerate the adoption of electric vehicles (EVs) in the sector.
Speaking at the Indonesia Critical Minerals Conference in Jakarta last week, ASPINDO Executive Director Bambang Tjahjono outlined the rising operational burdens faced by mining contractors due to the country’s evolving biodiesel mandate. The government is set to implement B50 in 2026, which would require a mix of 40% FAME (Fatty Acid Methyl Ester) and 10% HVO (Hydrotreated Vegetable Oil), with a longer-term vision to transition toward a 100% biodiesel blend.
"The use of biodiesel sourced from palm oil will not be enough to meet future energy demands in the mining sector. Given the operational and quality limitations of FAME-based biodiesel, switching to EV trucks and equipment becomes a critical alternative,” said Bambang.
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The biodiesel policy chart presented by ASPINDO highlights a phased trajectory starting with B10 and progressing to B40, with B50 targeted in 2026. However, ASPINDO warns that even a mix of 50% biodiesel will present significant risks to equipment performance and maintenance. FAME has been criticized for its high water absorption, sediment buildup, shorter fuel life, and reduced energy output, all of which increase operational costs and risks for mining contractors.
ASPINDO’s concern is further compounded by global market dynamics. The association pointed to European anti-palm oil campaigns that have hurt Indonesian exports, resulting in falling prices and making domestic palm-based fuel strategies even more difficult to sustain. According to ASPINDO’s projections, a full transition to 100% biodiesel by 2040 would require a doubling of palm oil productivity and at least 50% of mining operations to be electrified. Without that, the B50 and subsequent policies could become economically unsustainable.
ASPINDO is calling for targeted government incentives to help mining contractors and supporting industries make the shift toward electric fleets. “Tax reductions and investment support are essential to mitigate the high upfront cost of EVs and accelerate the transition,” Bambang concluded.
Editing by Reiner Simanjuntak
