Amran Says B50 Policy Will Not Disrupt Cooking Oil Supply

Minister of Agriculture Amran Sulaiman has assured that the implementation of Biodiesel 50 (B50) will not disrupt the national cooking oil supply. He said Indonesia’s crude palm oil (CPO) production is rising and the country still has a surplus for domestic needs.

Speaking in Jakarta on Tuesday, 19 May 2026, as reported by Antara, Amran said the increase in CPO production means Indonesia still has reserves and a surplus of supply even though part of production is allocated to support the national B50 biodiesel programme this year.

Amran noted that nationwide palm oil production stood at around 46 million tonnes, so the government is optimistic that biodiesel needs, domestic cooking oil, and exports can be met simultaneously.

Of that production, 20 million tonnes was allocated for cooking oil and 26 million tonnes for exports. However, exports have now risen to 32 million tonnes as palm oil productivity has increased. He did not provide detailed figures on the expansion of CPO production.

So, if 5 million tonnes is diverted, there would still be a surplus of 1 million for B50, Amran explained.

He compared the current situation to earlier when Indonesia’s palm oil export volume hovered around 26 million tonnes before production rose significantly in recent times.

For the current national needs, Amran said the allocation for B50 implementation is estimated at around 5-6 million tonnes of the national palm oil production.

Meanwhile, demand for cooking oil and other domestic needs is said to be around 20 million tonnes, so the B50 programme is expected not to disrupt citizen needs.

Amran emphasised that government calculations show national palm supply remains in surplus even as some production is diverted to bolster the biodiesel-based energy programme.

He added that the production and export figures come from Gapki, which has long been the reference for the domestic palm oil industry.

The government is optimistic that the B50 implementation can run in a way that balances national energy interests, citizens’ cooking oil needs, and continued exports of Indonesian palm oil to international markets, which account for about 60 percent.

Earlier, Coordinating Minister for Economic Affairs Airlangga Hartarto stated Indonesia would implement B50, a 50% palm oil blend in diesel, to save subsidies amounting to Rp 48 trillion.