Indonesia Limits Fuel Sales, Boosts Biofuel to Curb Energy Risks

Indonesia will ration fuel, accelerate its biodiesel plan and scale back President Prabowo Subianto’s signature free-meals program, marking a shift in how Southeast Asia’s largest economy is responding to energy supply disruptions from the Iran war.

The country will roll out a plan to raise the biodiesel blend in diesel fuel to 50% from 40% on July 1, Airlangga Hartarto, coordinating minister for economic affairs, said in a livestreamed media briefing late Tuesday. That marks a shift from January, when the world’s top palm oil producer said it couldn’t make the transition in 2026.