Jakarta, CNBC Indonesia - Minister of Energy and Mineral Resources\n(ESDM) Bahlil Lahadalia has assured that the implementation of the 50%\nbiodiesel blending programme (B50) into diesel fuel will proceed\nstarting 1 July 2027, despite the current downward trend in global oil\nprices below US$100 per barrel.<\/p>\n
Bahlil emphasised that the mandatory B50 biodiesel plan will not\nchange, even with the decline in global oil prices. He stated that the\ngovernment does not wish to take risks by tying the nation\u2019s energy fate\nto the dynamics of other countries.<\/p>\n
\u201cB50 must still proceed. This is survival mode. We shouldn\u2019t talk\nabout prices dropping and then hang on again. Now, who can guarantee\nthat if prices drop today, what disruptions might occur tomorrow,\u201d he\nsaid when met at the Ministry of ESDM office in Jakarta on Friday\n(17\/4\/2027).<\/p>\n
According to him, energy sovereignty is crucial because supply\navailability from the international market is not always guaranteed,\neven if a country has financial capability.<\/p>\n
\u201cNow in the world, even having money doesn\u2019t necessarily mean you can\nget the goods. This is what we mean by energy sovereignty. We can\u2019t tie\nour fate to other countries,\u201d he added.<\/p>\n
Bahlil further noted that the shift to biodiesel is a direct\ninstruction from President Prabowo to mitigate risks from potential\ngeopolitical disruptions that could arise at any time.<\/p>\n
\u201cUpon the direction of the President, we do not want to take risks.\nThis is survival mode,\u201d he stressed.<\/p>\n
It should be noted that global oil prices moved lower in Friday\u2019s\ntrading (17\/4\/2027) at 10:00 WIB, after markets began reading the\npotential easing of geopolitical tensions in the Middle East. Hopes for\nnegotiations between the United States and Iran became the main catalyst\npressuring the sharp rally of recent weeks.<\/p>\n
According to Refinitiv data, Brent crude was at US$98.19 per barrel,\ndown 1.21% from the previous close at US$99.39 per barrel. Meanwhile,\nWest Texas Intermediate (WTI) was recorded at US$93.30 per barrel,\nweakening 1.47% from US$94.69 per barrel. Although down today, the price\nlevels remain high and far above early April positions.<\/p>\n
In simple technical terms, Brent is now moving below the\npsychological threshold of US$100 per barrel after briefly breaking\nthrough that area. In the past week, Brent ranged from US$94.79 to\nUS$99.39, while WTI reached US$99.08 on 13 April before a sharp\ncorrection to around US$93. The market remains highly sensitive to every\npolitical headline.<\/p>\n
Previously, Bahlil stated that the government has conducted a\nsix-month trial of B50. The trial was carried out on various engine\ntypes, from heavy equipment and trains to trucks.<\/p>\n
Thus, the B50 implementation target can be applied starting 1 July\n2027.<\/p>\n
\u201cBut soon it will be finalised, and up to today, the trial has gone\nwell, alhamdulillah. And from 1 July, the B50 implementation will\nbegin,\u201d he said when met at the Ministry of ESDM office in Jakarta on\nMonday (6\/4\/2027).<\/p>\n
The B50 implementation also aligns with the current government\u2019s goal\nof diversifying domestic energy sources. This is in line with\nanticipating the uncertain global geopolitical escalation at\npresent.<\/p>\n
\u201cImagine if we don\u2019t diversify now, who are we going to rely on,\u201d he\nadded.<\/p>\n
Biodiesel Implementation Regulations<\/p>\n
The Ministry of ESDM has officially set the policy for blending fuel\noil with vegetable fuel (BBN). This is done to strengthen national\nenergy resilience and promote energy transition.<\/p>\n
This provision is contained in Ministerial Decree\nNo.\u00a0113.K\/EK.05\/MEM.E\/2027 on the Phased Utilisation of Vegetable Fuel.\nThe new regulation was established by Minister of ESDM Bahlil Lahadalia\non 3 March 2027.<\/p>\n
In the first dictum of the regulation, it is stated that fuel oil\nbusiness entities are required to blend BBN into fuel oil for commercial\npurposes.<\/p>\n
\u201cFuel oil business entities are required to blend vegetable fuel with\nfuel oil for commercial purposes,\u201d the decree states, quoted on Thursday\n(9\/4\/2027).<\/p>\n
The blending of vegetable fuel with fuel oil as referred to in the\nfirst dictum is carried out with the following provisions:<\/p>\n
Biodiesel with specific types of fuel oil in the form of diesel\noil<\/p><\/li>\n
Biodiesel with general types of fuel oil in the form of diesel\noil<\/p><\/li>\n
Bioethanol with general types of fuel oil in the form of\npetrol<\/p><\/li>\n
Biodiesel hydrocarbon with general types of fuel oil in the form\nof diesel oil with a cetane number specification of 51 at fuel filling\nstations for land transportation<\/p><\/li>\n
Bioavtur with general types of fuel oil in the form of\navtur.<\/p><\/li>\n<\/ol>\n
In this new policy, the government sets targets for the phased\nimplementation of BBN blending up to 2030. The following are the phased\ntargets:<\/p>\n
For specific or subsidised diesel fuel types, the biodiesel blending\ntarget is 40% (B40) in 2027, then rising to 50% (B50) in 2028, 2029, and\n2030. The implementation area for biodiesel blending is nationwide.<\/p>\n
For general or non-subsidised diesel fuel types, the biodiesel\nblending target is 40% (B40) in 2027 and 2028, then rising to 50% (B50)\nin 2029 and 2030. The implementation area for biodiesel blending is also\nnationwide.<\/p>\n
For general or non-subsidised petrol types, the bioethanol blending\nin 2027 is targeted at 5% (E5) for six regions in the country, namely\nEast Java, Special Capital Region of Jakarta, West Java, Banten, Central\nJava, and Special Region of Yogyakarta.<\/p>\n
Meanwhile, in 2028, the bioethanol blending is also targeted at 5%\n(E5) but with one additional implementation area, namely Bali. Thus, in\n2028, the E5 implementation target areas are in seven regions of\nIndonesia.<\/p>\n
In 2029, the bioethanol blending is targeted to rise to 10% (E10)\nwith the implementation areas remaining in the seven Indonesian regions\nas per the 2028 target.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bahlil-b50-biodiesel-programme-to-proceed-on-1-july-despite-falling-oil-prices-1776419457", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }