Agriculture Minister States 3.5 Million Tonnes of CPO to Be Allocated to Support B50 Mandate on 1 July
Makassar, South Sulawesi - Agriculture Minister Andi Amran Sulaiman stated that around 3.5 million tonnes of crude palm oil (CPO) have been prepared to support the mandatory Biodiesel 50 (B50) programme starting 1 July 2026, in order to strengthen national energy resilience and reduce solar imports.
“That is 5.3 million tonnes from our CPO to be turned into biofuel; that is the instruction from the President (Prabowo Subianto),” said Amran in Makassar, South Sulawesi, on Monday.
He explained that the policy is part of the implementation of the B50 programme, which encourages the use of plant-based energy while ensuring that national energy needs can be met from domestic sources in a sustainable manner.
According to the Minister, Indonesia currently controls around 60 per cent of the global CPO market, thus having significant capacity to balance export needs and domestic utilisation.
He noted that production increases of around 6 million tonnes have been driven by rising global CPO prices, prompting farmers to improve maintenance and productivity of their palm oil plantations.
With this production increase, the allocation of around 3.5 million tonnes of CPO for biofuel can still be carried out without disrupting export performance; in fact, both can grow simultaneously.
“B50 will be achieved this year. We are collaborating with the Minister of ESDM, Mr Bahlil (Bahlil Lahadalia); we are working with all parties,” said the Minister.
In addition, economic circulation in palm oil-producing regions is also increasing due to massive production, distribution, and processing activities of CPO into biofuel.
He added that the programme is being implemented through cross-ministerial collaboration, including with the Ministry of Energy and Mineral Resources, to ensure optimal implementation.
On the other hand, the government is also maintaining a balance in domestic energy supply, so that diesel needs can be met without relying on imports.
Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto stated that Indonesia will implement the Biodiesel 50 (B50) policy, or a 50 per cent mixture of crude palm oil with solar oil, to save subsidies worth Rp48 trillion.
“As part of efforts for energy independence and energy efficiency, the government is implementing the B50 policy. This will take effect from 1 July 2026,” said Airlangga.
He conveyed that PT Pertamina is ready to implement the policy.
The implementation of B50, according to Airlangga, has the potential to reduce the use of fossil fuel oil (BBM) by 4 million kilolitres (kl) in one year.
“Of course, in six months there will be savings from fossil fuels and also savings in biodiesel subsidies estimated at Rp48 trillion,” said Airlangga.
Energy and Mineral Resources Minister (ESDM) Bahlil Lahadalia stated that with the implementation of B50, Indonesia will experience a solar surplus in 2026.