Energy Shift Institute (ESI) Managing Director Putra Adhiguna has\nsaid the implementation of the B50 biodiesel mandate must be accompanied\nby efforts to keep fuel prices affordable for the public.<\/p>\n
According to Putra Adhiguna, B50 has the potential to reduce diesel\nimports while saving foreign exchange. Nevertheless, the benefits of\nforeign exchange savings need to be balanced against the interests of\nthe public as energy consumers.<\/p>\n
\u201cIt should be remembered that domestic products are good, but the\npublic certainly needs affordable fuel,\u201d Putra told ANTARA in Jakarta on\nThursday.<\/p>\n
The government is implementing the B50 Biodiesel Programme, which\naims to reduce dependence on oil imports, increase domestic palm oil\nconsumption and strengthen national energy security.<\/p>\n
The programme officially came into effect on 1 July 2026 and is\ncurrently in a three-month transition period towards full national\nimplementation on 1 October 2026.<\/p>\n
Putra said the use of domestically produced energy products is viewed\npositively, but fuel prices must remain at an affordable level.<\/p>\n
On the other hand, the increased use of B50 will drive higher demand\nfor CPO for domestic biodiesel needs. This condition could potentially\nprovide an additional market for the palm oil industry while increasing\nthe utilisation of domestic raw materials.<\/p>\n
However, Putra cautioned that the increase in CPO demand for energy\nmust remain balanced with food needs. According to him, the government\nneeds to ensure that the increased use of CPO for biodiesel does not\ndisrupt stability in the food consumption sector, because the impact\ncould be felt directly by the public.<\/p>\n
\u201cThe rising domestic CPO demand needs to be anticipated so that it\ndoes not create instability for the food consumption sector, because the\nimpact on the public is quite significant,\u201d Putra said.<\/p>\n
Putra assessed that the success of B50 implementation cannot be\nmeasured solely by the increase in biodiesel volume used, but also needs\nto consider its impact on the economy, the state budget, the palm oil\nindustry, and the public as fuel users.<\/p>\n
Putra also assessed that vehicles and engines can essentially adapt\nto the use of B50. Nevertheless, engine readiness and vehicle\ncompatibility still need to be considered, including the potential\nchange in fuel consumption after using a biodiesel blend with a higher\ncontent.<\/p>\n
\u201cTechnology can adapt, but the impact on public and industrial users\nis important to anticipate, including the more wasteful fuel consumption\nwith B50 and engine compatibility,\u201d Putra said.<\/p>\n
In addition to fuel prices, the fiscal aspect is also a concern in\nthe implementation of B50. Over a period of about 10 years, Indonesia is\nsaid to have spent around Rp250 trillion on biodiesel subsidies.<\/p>\n
Along with the increase in biodiesel volume, Putra said the\ngovernment needs to carefully calculate the impact on the state budget,\nincluding the potential reduction in export levy revenues as well as\ncosts ultimately borne by the government, industry and the public.<\/p>\n
With proper management, B50 is considered capable of becoming an\ninstrument to strengthen energy security while increasing the\nutilisation of domestic raw materials.<\/p>\n
The challenge is to ensure that the benefits of foreign exchange\nsavings and industrial strengthening continue to go hand in hand with\naffordable fuel prices, food stability and fiscal sustainability.<\/p>\n
The government has positioned the B50 Mandatory Biodiesel Programme\nas one of the instruments to strengthen national energy security.<\/p>\n
Through the blending of 50 percent biofuel into diesel, the programme\noffers a number of benefits, ranging from ending diesel imports, foreign\nexchange savings of up to Rp170 trillion, increased CPO absorption, job\ncreation, to reduced greenhouse gas emissions.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/esi-b50-implementation-must-be-accompanied-by-affordable-fuel-prices-1787813607", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }