Government Assures B50 Mandate Will Not Reduce CPO Exports

The Coordinating Ministry for Economic Affairs has assured that the mandatory implementation of 50 percent biodiesel (B50) will not reduce Indonesia’s export volume of crude palm oil (CPO). Dida Gardera, Expert Staff for Connectivity and Service Development at the ministry, stated in Jakarta that this is reflected in the country’s experience transitioning from B35 to B40 in 2025. “The need for palm oil increased, but exports also rose by 3 to 4 million kilolitres in the same year. This means we are maintaining everything; exports are not decreasing, which serves as an incentive for biodiesel,” Dida explained. He added that cross-ministerial coordination, including with the Palm Oil Plantation Fund Management Agency (BPDP), remains close to ensure the success of these priorities. “We will continue to monitor and evaluate. So far, in terms of CPO volume, we can meet all needs, and in terms of budget, the cash flow is still sufficient,” he said. The government has officially mandated the B50 programme to commence in July 2026 as a measure to reduce carbon emissions and achieve national energy resilience.