Jakarta. German logistics company Rhenus Group has made biodiesel a mandatory fuel for its trucking fleet in Indonesia, citing the renewable fuel’s availability, local alignment, and immediate scalability as key factors behind the decision.

“Since Indonesia is the world's largest palm oil producer, biodiesel is a mandatory option for our road freight transportation here,” said Fabian Kieble, Managing Director of Rhenus Indonesia, in an email interview with the Jakarta Globe.

With the government preparing to implement the B40 mandate in 2025, requiring a 40 percent palm oil blend in diesel, the logistics firm sees biodiesel as the most viable short-term solution for cutting transport emissions while supporting Indonesia’s 2060 net-zero goal.

Indonesia’s palm oil-based biodiesel is expected to reduce carbon dioxide (CO₂) emissions by up to 40 million tons annually. The fuel is also central to the government’s strategy to cut fossil fuel imports and promote cleaner energy alternatives.

Rhenus is currently piloting electric trucks across the Asia-Pacific region and aims to scale up electric vehicle (EV) adoption as infrastructure improves. However, Kieble said electric trucks still face challenges in Indonesia, including high costs, limited charging infrastructure, and range limitations, particularly given the country’s vast archipelagic geography.

“Looking ahead, if there is sufficient infrastructure, we have the goal to implement EV cars and also EV trucks in our business structure,” Kieble said.

Beyond vehicle choices, Rhenus is stepping up its collaboration with government agencies and logistics stakeholders to drive systemic green transformation. The company is working with the Transportation Ministry and the Coordinating Ministry for Economic Affairs to establish “green freight corridors” that reduce the logistics sector’s environmental footprint.

To support decarbonization across the industry, the company offers shipment-level emissions tracking and sustainability advisory services to help clients through increasingly stringent global climate regulations, including the EU Emissions Trading System (EU ETS), the Carbon Border Adjustment Mechanism (CBAM), and the Corporate Sustainability Reporting Directive (CSRD).

“These regulations are becoming more relevant to Indonesian exporters,” said Kieble. “Our services ensure they remain compliant and competitive in the EU market by providing transparent emissions tracking and documentation aligned with CSRD and EU ETS requirements.”

Over the next three to five years, Rhenus Indonesia will focus on rolling out emissions tracking for all customer shipments, promoting the use of its Rhegreen platform for low-emission transport routes, and switching to renewable electricity.