Minister of Energy and Mineral Resources Regulation (Permen ESDM) No. 4 of 2025 — Business Activities and Utilisation of Biofuels

Minister of Energy and Mineral Resources Regulation (Permen ESDM) No. 4 of 2025, issued by the Ministry of Energy and Mineral Resources (ESDM), governs business activities in and the utilisation of biofuels (BBN). It replaces Permen ESDM No. 32 of 2008 and its amendments, and also serves as a reference for implementing Presidential Regulation (Perpres) No. 40 of 2023 on the supply of bioethanol as a biofuel. It matters for the palm oil industry because it sets the operating rules for biofuel businesses, including biodiesel producers, whose main feedstock in Indonesia is palm oil.

Key points

• The biofuels covered are biodiesel (B100), bioethanol (E100), biohydrocarbon diesel (D100), bioavtur (J100), and other biofuels designated by ministerial decree.
• Biofuel business entities must hold a business licence for biofuel activities in line with risk-based licensing rules.
• Biofuel business entities are prohibited from importing biofuels.
• Biofuel exports are permitted only after taking domestic needs into account and based on an evaluation by the Minister.
• Biofuel business entities must guarantee the availability and quality of biofuels, prioritise domestic products, ensure selling prices remain at a reasonable level, and apply occupational health and safety and environmental management.
• Biofuel business entities must submit data and reports on their biofuel business activities, including prices, to the Minister every month or at any time when required.

Who it affects

Biofuel business entities engaged in processing, buying, selling, transporting, storing and marketing biofuels, including biodiesel businesses.