Indonesian Political, Business & Finance News

Bahlil Says Pertamina is the Main Pillar for B50 Programme Success

| | Source: REPUBLIKA Translated from Indonesian | Energy
Bahlil Says Pertamina is the Main Pillar for B50 Programme Success
Image: REPUBLIKA

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has said that PT Pertamina (Persero) is the key to the successful implementation of the B50 Biodiesel Mandatory Programme. According to him, Pertamina’s role is decisive because it processes around 80 per cent of the fatty acid methyl ester (FAME) used in the programme.

Bahlil acknowledged that the implementation of B50 would not have been possible without support from various ministries, agencies and businesses. However, he considered Pertamina’s contribution one of the main factors ensuring the programme runs according to target.

“Honestly, without Pertamina, B50 would not run. Because 80 per cent of the FAME is refined by Pertamina,” the ESDM Minister said while delivering a report to President Prabowo Subianto at the launch of the B50 Biodiesel Mandatory Programme at the KM 57 rest area in Karawang, West Java, quoted on Friday (10/7/2026).

Bahlil assured that the government had prepared the implementation of B50 through cross-sector coordination, covering regulation, raw material supply, distribution and technical testing. According to him, all these preparations form the foundation for the smooth implementation of B50.

“This is joint work, a collaborative effort,” he said.

The government has also carried out comprehensive B50 testing across six diesel engine user sectors: automotive, agricultural tools and machinery, mining heavy equipment, maritime transport, power generation and railways. The testing involved ministries and agencies, state enterprises, associations, academics, technology owners and user industries. Preliminary results show that B50 is safe to use and meets performance and compatibility requirements across various diesel engine applications.

The implementation of B50 is expected to deliver significant economic and environmental impact. The programme is projected to save around Rp 170 trillion in foreign exchange in 2026, increase the added value of the crude palm oil (CPO) industry to around Rp 23.49 trillion, absorb around 2.1 million workers, and reduce greenhouse gas emissions by around 44.46 million tonnes of CO2.

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