B50 Programme Requires Rp 32.3 Trillion in 2026, BPDP Confirms Budget Readiness

The Oil Palm Plantation Fund Management Agency (BPDP), through its Director of Downstream Sector Fund Distribution, Muhammad Alfansyah, has confirmed its budget readiness to finance the implementation of the 50 per cent biodiesel programme (B50) and diesel subsidies for fishermen. “(Regarding budget readiness) BPDP is ready to support,” Alfansyah said in Jakarta on Wednesday, 15 July 2026. He estimated that the funding requirement for this year’s biodiesel programme would reach approximately Rp 32.3 trillion. However, Alfansyah assured that supporting programmes in the palm oil sector would continue to run and would not be disrupted. These include the smallholder palm oil replanting programme (PSR), facilities and infrastructure programmes, human resource development, and research funding. “As I mentioned earlier, PSR, infrastructure, research, and human resources must have funding, it is mandatory,” he stated. In addition to the B50 programme, he said BPDP is also preparing the necessary budget for 400,000 kilolitres of diesel for fishermen. Alfansyah explained that the budget prepared is less than Rp 1.5 trillion, based on the assumption that the subsidy to be borne by BPDP amounts to Rp 3,600 per litre, multiplied by the allocated diesel volume of 400,000 kilolitres. It is known that President Prabowo Subianto has instructed the provision of a special fuel price of Rp 15,000 per litre for fishing entrepreneurs operating vessels sized between 30 and 200 gross tonnage. “Because these fishing entrepreneurs need to be given a special price, it was discussed that the agreed price is Rp 15,000 per litre,” said Coordinating Minister for Economic Affairs Airlangga Hartarto on Monday, 13 July 2026. He explained that the non-subsidised fuel price had previously reached Rp 21,300 per litre. Meanwhile, fishermen with vessels under 30 GT already receive subsidised fuel at Rp 6,800 per litre. According to Airlangga, the average domestic diesel production cost is around Rp 18,600 per litre. The difference of approximately Rp 3,600 per litre will be financed through BPDP funds and not from the state budget.