In recent years, the government has been aggressively encouraging the use of biofuel as one of the main alternatives to fuel oil. It is hoped that the use of biofuel will provide various benefits, including reducing emissions, reducing dependence on imported oil, increasing employment and regional economic growth, and reducing poverty. However, there are many constraints and impacts on the economic, social, and environmental side that arise in the course of this biofuel use program. In addition, along with the development of other alternative technologies, the potential future demand for biofuels is becoming increasingly uncertain. This study tries to analyze the impact of the biofuel use policy from an economic, social, and environmental perspective, as well as to provide several proposals for the steps needed to make biofuel policy more sustainable.