The government is set to realise the mandatory 50% biodiesel blending\n(B50) programme in diesel fuel this year. Several parties have provided\ninput to ensure the programme\u2019s implementation runs smoothly.<\/p>\n
Member of the National Energy Council (DEN), Satya Widya Yudha, views\nthe programme to increase the biodiesel blend towards B50 as part of the\ngrand plan towards Net Zero Emission (NZE) 2060. The programme targets\nthe sectors that contribute most to carbon emissions, namely industry\nand transportation.<\/p>\n
The biodiesel programme has a long journey and has been implemented\ngradually from B5, B10, B20, B30, B40, and now towards B50. This\napproach aims to allow the adaptation process in industry, availability\nof raw materials, and technological readiness to proceed in tandem.<\/p>\n
\u201cWe are trying to see what can be done so that the programme that has\nbeen established and is already in the National Energy Policy (KEN) can\nbe achieved together,\u201d he explained, at the Energy Forum B50 Edition,\nquoted on Wednesday (8\/4\/2026).<\/p>\n
Satya added that the B50 programme must maintain a balance between\ntwo main objectives: reducing carbon emissions through the use of\nrenewable energy and preserving state revenues from exports of crude\npalm oil (CPO) commodities.<\/p>\n
In the same opportunity, Deputy Chairman of the People\u2019s Consultative\nAssembly (MPR) RI, Eddy Soeparno, views the programme to increase the\nbiodiesel blend from B40 to B50 as an important part of the national\nenergy transition agenda. However, he reminds that the implementation\nmust consider two main basic concepts: energy resilience and national\ncapability and needs.<\/p>\n
Fundamentally, biodiesel implementation is aimed at strengthening\nnational energy resilience. Through the programme, Indonesia can reduce\ndiesel imports. In fact, Indonesia can achieve a surplus in diesel\nfuel.<\/p>\n
\u201cSecond, capability and needs. So what is our capability like? To\nincrease the blend from B40 to B50. Including the current needs. The\nneeds, for example, whether they will sacrifice other things,\u201d he\nclarified.<\/p>\n
Eddy continued, highlighting the challenges in implementing B50 that\ndemand an increase in domestic palm oil production. The risk is that the\nprogramme must sacrifice land if efforts to increase production through\nintensification strategies cannot yet be carried out optimally.<\/p>\n
In addition, the B50 programme also requires adequate oil refinery\nreadiness so that national needs can be met. Another aspect to consider\nis the impact of the B50 programme on vehicles and transportation that\nrequire adjustments or revitalisation so that the engines are suitable\nfor consuming the fuel.<\/p>\n
Meanwhile, Executive Director of the Indonesian Palm Oil\nEntrepreneurs Association (GAPKI), Mukti Sardjono, stated that one of\nthe challenges in implementing B50 is the stagnant national crude palm\noil (CPO) production capacity. In the last five years, national CPO\nproduction has been in the range of 48 million to 51 million tonnes.<\/p>\n
Amid stagnant production, domestic CPO consumption continues to rise,\nespecially since the mandatory biodiesel programme. For illustration, in\n2023, CPO consumption for biodiesel already exceeded consumption for\nfood.<\/p>\n
When B40 was implemented, CPO consumption to support the programme\nreached more than 12 million tonnes. If B50 is applied, the CPO\nrequirement for biodiesel will rise to around 16 million tonnes. The\nimpact is that Indonesia must sacrifice CPO exports to meet priority\ndomestic programme needs.<\/p>\n
\u201cEnergy resilience must be maintained, and downstream energy must\nalso be maintained. Whether we like it or not, exports will be\nsacrificed. If exports drop, export levy revenues also drop. Export\nlevies have actually been used to subsidise biodiesel all this time,\u201d he\nsaid.<\/p>\n
Therefore, domestic CPO production must be increased to succeed the\nB50 programme. If not, there is a possibility that CPO exports will\ndecline again because national production is prioritised for the B50\nprogramme.<\/p>\n
So far, constraints in increasing production relate to the\navailability of land limited by moratoriums or prohibitions on adding\nnew palm oil land.<\/p>\n
GAPKI also noted that the government has actively pursued\nproductivity enhancement efforts through the People\u2019s Palm Oil\nRejuvenation (PSR) programme since 2015-2016, targeting 180,000 hectares\n(Ha) per year. However, the realisation has not met expectations.<\/p>\n
Then, Mukti suggested to the government to provide special areas\ndesignated for palm oil production related to the B50 programme. The\nland could be managed by state-owned enterprises (BUMN). This is done so\nthat the programme does not disrupt CPO needs for the food sector or\nexports.<\/p>\n
\u201cSo it will not affect food needs or export needs. So open the\nmoratorium first, opened but specifically for BUMN,\u201d he said.<\/p>\n
On the other hand, General Secretary of the Indonesian Automotive\nIndustry Association (Gaikindo), Kukuh Kumara, hopes that the B50\nprogramme can be implemented through a gradual transition and more\ncomprehensive technical testing. Because every change in mandatory\nbiodiesel policy will directly impact motor vehicle users.<\/p>\n
Actually, automotive manufacturers have been involved in initial B50\ntrials up to more than 10,000 kilometres (km). So far, no major issues\nhave been found in vehicles as occurred during the B35 programme trial.\nVehicle performance remains relatively stable.<\/p>\n
\u201cNow perhaps the stage is to test in areas with relatively cold\ntemperatures,\u201d he said.<\/p>\n
Kukuh reminded that risks to vehicle engine performance remain when\nbiodiesel blending is done at higher levels. In this case, there is\npotential for a decrease<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/b50-biodiesel-mandate-to-proceed-on-1-july-2026-here-are-inputs-from-experts-1775627520", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }