Event: Java

Four trucks and a passenger bus have just completed a 40,000-kilometer road trip around Java. The epic journey — a distance equivalent to a circumnavigation of the globe — will help to determine whether Indonesia can deliver one of the world’s most ambitious biofuel-blending mandates in the next few months.With energy bills rising due to the Iran war, the Southeast Asian nation is fast-tracking the rollout of a diesel blend comprised 50% of biofuels from its vast palm plantations. The aggressive timetable will push the industry’s limits and serve as a test case for other crop-rich economies — from Malaysia to Brazil — that are seeking to cut reliance on fossil fuels.“If Indonesia succeeds, it shows that very high biofuel blends are possible when demand is engineered” rather than left to market forces, said Khor Yu Leng, an economist at Segi Enam Advisors in Singapore, who has tracked the palm oil industry for nearly two decades. “This could push other countries to strengthen mandates for energy security.”By some distance, Indonesia is the global leader in terms of the proportion of biofuels in its diesel mix. The country produces a blend that is 40% derived from palm oil, and its ambition to introduce the next grade — B50 - aligns with President Prabowo Subianto’s push toward self-sufficiency in food and fuel.The world’s biggest palm oil producer has the resources to succeed. The spike in crude prices arising from the war has also given the country a window to advance its goal — on the rare occasions, such as now, when conventional diesel costs more than biofuel, the government avoids paying a subsidy that’s usually needed to incentivize producers and keep biodiesel competitive at the pump.But the race to roll out B50 by July — at least a year ahead of a…