B50 Implementation Assessed to Strengthen National Energy Security

The government remains committed to achieving national energy independence through the implementation of a biofuel programme based on palm oil. Starting 1 July 2026, the increase of the biodiesel blend to 50 per cent (B50) will serve as a strategic step in strengthening national energy security.

This initiative is also intended to reduce dependence on imported fossil fuels and increase the added value of Indonesia’s palm oil commodities. The B50 mandatory programme is a continuation of the successful implementation of biodiesel mandates that have been operational over recent years.

According to data from the Ministry of Energy and Mineral Resources (ESDM), the implementation of the biodiesel programme between 2015 and 2025 has resulted in foreign exchange savings of Rp 722.9 trillion. Furthermore, it has created an added value of Rp 114.7 trillion through the processing of CPO into biodiesel, supported the employment of up to 10.9 million people in the palm oil sector, and contributed to a reduction in greenhouse gas emissions by 228.41 million tonnes of CO₂.

The President Director of BPDP, Eddy Abdurrachman, stated that the implementation of B50 is tangible evidence of the synergy between national energy policy and the development of a productive and sustainable palm oil industry. He noted that the biodiesel programme has become a strategic instrument in strengthening national energy security while creating a robust domestic market for Indonesian palm oil products.

“The implementation of B50 demonstrates the government’s commitment to continuously increasing the use of renewable energy based on domestic resources,” he said in a press release in Jakarta on Monday (29/06/2026).

According to Eddy, the success of the B50 implementation is inseparable from the ongoing efforts to strengthen the upstream sector. In this regard, he added that BPDP does not only support the biodiesel programme but also executes various strategic programmes aimed at increasing the productivity, sustainability, and competitiveness of the national palm oil industry.