Deputy Minister: B50 Biodiesel Proof of Agricultural Development for Energy Security
Deputy Minister of Agriculture Sudaryono stated that the implementation of 50 percent biodiesel (B50) is proof of the agricultural sector’s readiness and development to help realise national energy security. “With B50, this shows that we are ready as an agrarian country, how to utilise the wealth and fertility and the hard work of our farmers throughout Indonesia for sufficient food availability for our nation and ready for energy self-sufficiency in the future,” Sudaryono said in Jakarta on Thursday.
Furthermore, the Deputy Minister said the development and implementation of B50 has enabled Indonesia to stop importing diesel fuel as of July. “With B50, Indonesia no longer imports diesel fuel. Because 50 percent of the fossil diesel fuel is produced from wells within our country, and the remaining 50 percent is then converted from our palm oil,” Sudaryono explained.
Based on data from the Ministry of Energy and Mineral Resources, total diesel consumption in Indonesia has currently reached 39 million kilolitres, with the 40 percent biodiesel mandate (B40) already implemented by the government. The implementation of the B50 policy is expected to maintain the price of fresh fruit bunches at the farmer level while reducing fuel imports.
Meanwhile, according to the Ministry of Agriculture, the increased use of palm oil as a biodiesel feedstock is expected to expand the domestic market, increase the added value of the commodity, and strengthen farmers’ welfare. The national palm oil industry’s performance is showing a positive trend. Crude palm oil production throughout 2025 reached 51.66 million tonnes, an increase from 48.16 million tonnes in 2024, representing a growth of 7.3 percent. At the same time, exports increased from 29.53 million tonnes to 32.34 million tonnes, in line with the greater use of palm oil as biodiesel feedstock.
“We can see from that demand, there is an additional 8.5 million tonnes of CPO that must be added because previously it was B40, now it has increased to B50,” said Deputy Minister Sudaryono. President Prabowo Subianto officially launched the B50 biodiesel mandate programme in Karawang, West Java, on Thursday (9/7). The launch of B50 is an important milestone in strengthening national energy independence while increasing the added value of palm oil commodities, which directly impacts farmers’ welfare.