Jakarta, CNBC Indonesia \u2014 The government will soon roll out the B50\nbiodiesel programme in 2026. Several parties have provided input to\nensure the implementation runs smoothly.<\/p>\n
A member of the National Energy Council (DEN), Satya Widya Yudha,\nsaid that at its core, increasing the biodiesel blending towards B50 is\npart of a grand plan towards Net Zero Emission (NZE) 2060. The programme\ntargets sectors that contribute most to carbon emissions, namely\nindustry and transport.<\/p>\n
The biodiesel programme has a long trajectory and has been\nimplemented gradually starting from B5, B10, B20, B30, B40, up to B50\nthis time. The approach is intended so that the process of industry\nadaptation, feedstock availability, and technology readiness can\nprogress in tandem.<\/p>\n
\u201cWe try to see what can be done so that the programme that has been\nset and already included in the National Energy Policy (KEN) can be\nachieved together,\u201d he said at the Energy Forum B50 Edition, reported on\nFriday (6 March 2026).<\/p>\n
Satya added that the B50 programme must be able to balance two main\ngoals: reducing carbon emissions through the use of renewable energy and\nmaintaining state revenue from the export of crude palm oil (CPO).<\/p>\n
In the same event, Deputy Speaker of the Indonesian People\u2019s\nConsultative Assembly (MPR RI), Eddy Soeparno, viewed that the blending\nincrease from B40 to B50 is an important part of the national energy\ntransition agenda. However, he reminded that the implementation of the\nprogramme must consider two fundamental concepts: energy resilience and\nthe country<\/p>\n
\ufffd\ufffd\ufffds capability and needs.<\/p>\n
In essence, the biodiesel implementation is aimed at strengthening\nnational energy resilience. Through the programme, Indonesia could\nreduce diesel imports. It could even achieve a diesel surplus.<\/p>\n
\u201cSecondly, capability and needs. What is our capability to increase\nthe blend from B40 to B50? This includes what our current needs are.\nWill the needs later sacrifice something else?\u201d he explained.<\/p>\n
Eddy continued, he highlighted challenges in implementing B50 that\nrequire increased domestic palm oil production. The risk is that the\nprogramme might have to sacrifice land, if efforts to increase\nproduction via intensification strategies cannot be implemented\noptimally.<\/p>\n
Furthermore, the B50 programme also requires adequate refinery\nreadiness so that national needs can be met. Another aspect to consider\nis the impact of the B50 programme on vehicles and transport, which may\nrequire adjustments or revitalisation so their engines are compatible\nwith this fuel.<\/p>\n
Meanwhile, Mukti Sardjono, Executive Director of the Indonesian Palm\nOil Association (GAPKI), stated that one of the challenges in\nimplementing B50 is the ability of national crude palm oil (CPO)\nproduction to grow, which has tended to stagnate. In the last five\nyears, domestic CPO production has hovered around 48\u201351 million\ntonnes.<\/p>\n
Against stagnant production, domestic CPO consumption continues to\nrise, particularly since the biodiesel mandate began. For example, in\n2023 CPO consumption for biodiesel already exceeded that for food.<\/p>\n
When B40 is implemented, CPO consumption to support that programme\nreached over 12 million tonnes. If B50 is introduced, demand for CPO for\nbiodiesel would rise to around 16 million tonnes. The result is that\nIndonesia would need to sacrifice CPO exports to meet the domestic\npriority programme.<\/p>\n
\u201cEnergy resilience must be safeguarded; downstream energy must be\nsafeguarded as well. Whether we like it or not, exports have to be\nsacrificed. If exports fall, the revenue from export levies also falls.\nThe export levies have so far been used to subsidise biodiesel,\u201d he\nsaid.<\/p>\n
Therefore, domestic CPO production must be increased to make B50 a\nsuccess. Otherwise, exports could decline again as production is\nprioritised for the B50 programme.<\/p>\n
To date, constraints in boosting production relate to land\navailability limited by moratorium or prohibitions on adding new palm\nplantations.<\/p>\n
GAPKI also notes that the government actively pursues productivity\nimprovements through the smallholder oil palm replanting programme (PSR)\nsince 2015\u20132016, targeting 180,000 hectares per year. However, actual\nrealisation has fallen short of expectations.<\/p>\n
Mukti therefore advised the government to allocate a dedicated area\nfor palm oil production linked to the B50 programme. The land could be\nmanaged by state-owned enterprises (BUMN). This would ensure the\nprogramme does not encroach on CPO needs for food or exports.<\/p>\n
\u201cSo it will not affect food needs or exports. So even if moratorium\nis lifted, it should be opened but specifically for BUMN,\u201d he said.<\/p>\n
On the other hand, Kukuh Kumara, Secretary General of the Automotive\nIndustry Association (Gaikindo), hopes the B50 programme can be\nimplemented through a gradual transition and more comprehensive\ntechnical testing. Because policy changes to biodiesel mandates will\nhave immediate impacts on motorists.<\/p>\n
In fact, automakers have already been involved in early B50 trials,\ncovering more than 10,000 kilometres. So far, no major issues have been\nfound in vehicles, unlike during the B35 trials. Vehicle performance\nremains relatively stable.<\/p>\n
\u201cNow perhaps the stage is to test in areas with relatively cool\ntemperatures,\u201d he said.<\/p>\n
Kukuh warned that there remains a risk to engine performance when\nbiodiesel is blended at higher proportions. In this context, there is\npotential a reduction in engine performance of around 2.5% to 3%.\nHowever<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/discussing-the-b50-biodiesel-programme-experts-share-this-insight-1772805687", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }