{
    "success": true,
    "data": {
        "id": 1677995,
        "msgid": "biodiesel-programme-deemed-effective-in-curbing-fuel-oil-imports-1776217851",
        "date": "2026-04-15 07:37:55",
        "title": "Biodiesel Programme Deemed Effective in Curbing Fuel Oil Imports",
        "author": "Erik Purnama Putra",
        "source": "REPUBLIKA",
        "tags": "",
        "topic": "Energy",
        "summary": "Indonesia's mandatory biodiesel policy has significantly reduced reliance on imported diesel fuel, potentially saving up to $8-10 billion in foreign exchange annually, according to experts from the University of Indonesia and the Palm Oil Agribusiness Strategic Policy Institute. The programme leverages abundant domestic palm oil resources and advanced processing technology, with implementations from B1 to a targeted B50 by July 2026, already cutting diesel imports by 3.3 million kilolitres between 2024 and 2025 while adding value to crude palm oil and reducing CO2 emissions. However, sustainable governance of the palm oil industry is crucial to prevent deforestation, protect indigenous rights, and avoid trade-offs between energy and food supplies.",
        "content": "<p>The Indonesian government has implemented a mandatory biodiesel\npolicy that has successfully reduced dependence on imports of\npetroleum-based fuels (BBM), particularly diesel. Professor Rhenald\nKasali from the Faculty of Economics and Business at the University of\nIndonesia (FEB UI) stated that the mandatory biodiesel policy has great\npotential as a substitute for diesel. This is supported by the abundant\navailability of palm oil raw materials domestically and the readiness of\nprocessing technology. \u201cThe biodiesel programme is indeed effective in\ncurbing diesel imports and improving the energy trade balance through\nsignificant reductions in diesel imports. The programme could save up to\n$8-10 billion in foreign exchange per year,\u201d he said, quoted in Jakarta\non Tuesday (14\/4\/2026). Rhenald hopes for good governance of the palm\noil industry to support the sustainability of the biodiesel programme.\nThis includes efforts to prevent deforestation, preserve the\nenvironment, and respect the rights of indigenous communities. He noted\nthat the biodiesel programme can minimise the potential for conflict\nbetween food and energy needs (trade-off fuel-food). \u201cIt should be\nremembered that palm oil is not a homogeneous product for energy.\nIncreasing the allocation of crude palm oil (CPO) to energy can reduce\nfood supplies, triggering difficulties for household substitutes, namely\nshortages and rising prices of cooking oil,\u201d Rhenald said. Executive\nDirector of the Palm Oil Agribusiness Strategic Policy Institute\n(Paspi), Tungkot Sipayung, stated that the development of bioenergy\nthrough the mandatory biodiesel policy contributes significantly to\nreducing imports of fossil-based BBM. Tungkot detailed that Indonesia\nhas consistently developed the mandatory biodiesel programme from B1 to\nB50, targeted for July 2026. The programme is capable of reducing\ndependence on diesel imports by around 50 percent. The implementation of\nB40 biodiesel has reduced diesel imports from 8.3 million kilolitres\n(kl) in 2024 to 5 million kl in 2025, a reduction of 3.3 million kl.\nFrom the perspective of foreign exchange savings on imports, according\nto Tungkot, the 2025 biodiesel policy succeeded in saving Rp 130.21\ntrillion and reducing emissions by 38.88 million tons of CO2 equivalent.\nFurthermore, the B40 programme increased the added value of CPO to\nbiodiesel by Rp 20.43 trillion.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/biodiesel-programme-deemed-effective-in-curbing-fuel-oil-imports-1776217851",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}