Bahlil: Without Pertamina, B50 Fuel Programme Would Not Run

Jakarta, CNBC Indonesia – President of the Republic of Indonesia Prabowo Subianto officially launched diesel fuel blended with 50% palm oil-based biofuel, known as B50, on Thursday (9/7/2026).

At the launch ceremony, Bahlil stated that B50 would not have gone ahead without the presence of PT Pertamina (Persero). The reason, he said, is that 80% of the Fatty Acid Methyl Ester (FAME) – the fuel derived from vegetable oil – is refined to a high standard by the state-owned oil and gas company.

“To be honest, Mr President, without Pertamina this B50 would not work, because 80% of the FAME is refined by Pertamina. Because of that processing, prices sometimes go up and down, Mr President. Hopefully with this launch the price will be more stable,” Bahlil explained in his remarks at the Official Launch of the B50 Mandate in Karawang, West Java, on Thursday (9/7/2026).

Bahlil recounted that a mandatory biofuel blending policy normally takes time – up to a maximum of ten years, including three years of trials. As is known, B50 is being implemented just one year after the rollout of B40 in 2025.

“Honestly, this is not easy work. Usually the stages, Mr President, are increases of 5%, 10% at most. Even then, within those ten years, three years would be needed just for trials. But the President’s instruction at the time was that, one way or another, B50 must be launched in 2026,” he said.

“Because we interpret the President’s direction and order not merely as a matter of B50, but as a matter of sovereignty, self-reliance and the nation’s dignity in producing energy from our own country,” Bahlil asserted.

On the basis of that directive, Bahlil added, teams across ministries immediately coordinated so that B50 could be launched as soon as possible.

“The test case took six months. So trains, cars – even Mercedes vehicles were tested, Mr President. Not only Toyota, Mercedes too passed. So we had everything tested, from Asia to Europe. All the ships were tested as well. And thank God, Mr President, the test results show that the quality of B50 is far better than B40,” Bahlil explained.