B50 Becomes National Energy Strategy Amid Middle East Conflict
The government is accelerating the preparation of an economic policy package as a response to global pressures resulting from the Middle East conflict that has triggered a surge in energy prices, including fuels.
Coordinating Minister for the Economy Airlangga Hartarto stated that the policies encompass energy conservation, budget efficiency, and strengthening the B50 biodiesel programme.
This step follows directives from President Prabowo Subianto, discussed in a coordination meeting on Saturday (28/3/2026).
“All of it is being comprehensively reviewed, taking into account developments in the Middle East conflict and global uncertainties that impact energy stability, supply chains, and the national economy,” he said, quoted on Sunday (29/3/2026).
He added that the policy package is being prepared to maintain domestic economic stability amid external pressures, while strengthening national resilience and promoting sustainable growth.
On the fiscal side, the government is also preparing scenarios for budget efficiency volume II to keep the 2026 State Revenue and Expenditure Budget (APBN) deficit below 3 percent of Gross Domestic Product (GDP).
Initial results show that a 50 percent biodiesel blend in diesel provides better performance in vehicles.
Secretary of the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources, Harris Yahya, said that mandatory implementation of B50 has the potential to be carried out in the near future, while still considering the readiness of raw material supplies.
“So, the possibility of mandatory implementation (B50) will most likely be carried out not too long from now,” he stated.
As a note, the utilisation of biodiesel based on crude palm oil (CPO) for diesel blending in the B40 programme until the end of 2025 has reached 14.2 million kilolitres.
Nevertheless, several parties have warned against rushing the implementation of B50.
Member of the National Energy Council (DEN), Fadhil Hasan, suggested that the government focus on optimising the B40 programme first before increasing the blend ratio.