B50 Touted as Indonesia's Path to Reduce Fuel Imports, Here's the Calculation of Its Benefits

The Mandatory B50 Programme has been described as one of the government’s strategies to strengthen national energy security. The policy, which regulates the blending of diesel fuel with 50 percent palm oil-based biofuel, is considered not only capable of reducing Indonesia’s dependence on imported fuel oil but also of providing broad economic impacts. These impacts range from foreign exchange savings to encouraging the growth of the domestic palm oil industry. This was presented by Bandung Institute of Technology Professor Tri Yuswidjajanto Zaenuri. He explained that the programme is a government step to optimise the utilisation of domestic natural resources, particularly crude palm oil, as a renewable energy source. According to him, Indonesia has significant capital as it is one of the world’s largest CPO producers, with national production reaching approximately 53 million tonnes per year. He stated that energy self-sufficiency is a strategic necessity given that Indonesia still relies on fuel imports to meet national energy needs. This dependence not only burdens the country’s foreign exchange reserves but also increases risks due to various external factors, such as rupiah exchange rate fluctuations, world oil price volatility, and threats to the energy supply chain. ‘Therefore, the development of domestic resources such as biofuels must continue to be pursued so that we can achieve energy self-sufficiency. The B50 programme is one of the efforts to realise this,’ he said, as quoted from a press release on Wednesday, 15 July 2026. According to Tri, the implementation of the Mandatory B50 Programme is expected to provide considerable economic benefits. In addition to suppressing diesel imports, this policy also has the potential to save the country’s foreign exchange while improving the oil and gas trade balance. Data from the Ministry of Energy and Mineral Resources shows that the implementation of the biodiesel programme from 2015 to 2025 resulted in foreign exchange savings of IDR 722.9 trillion. In addition, the processing of CPO into biodiesel created added value reaching IDR 114.7 trillion. The biodiesel programme has also been said to support the absorption of up to 10.9 million workers in the palm oil sector and contribute to the reduction of greenhouse gas emissions by 228.47 million tonnes of CO₂.