IESR: B50 Implementation Can Reduce Dependence on Diesel Imports

Chief Executive Officer of the Institute for Essential Services Reform (IESR), Fabby Tumiwa, stated that the implementation of B50 can reduce Indonesia’s dependence on imported diesel fuel. “The implementation of B50 can help improve Indonesia’s trade balance through the reduction of diesel oil imports,” Fabby Tumiwa said in a statement in Jakarta on Thursday. However, he continued, the implementation of B50 needs to be strengthened and complemented with a mix of mutually reinforcing policies to achieve energy security. “The government still needs to implement a complementary policy mix, such as accelerating transport electrification and implementing fuel economy standards, which are considered more cost-effective in suppressing fuel imports while strengthening long-term energy independence,” he said. The use of B50 itself will provide greater economic benefits when global crude oil prices are high due to global uncertainty. President Prabowo Subianto launched the Mandatory B50 Programme in Karawang Regency, West Java, on Thursday, as a measure to strengthen energy independence and reduce dependence on fuel imports. The President said Indonesia is the first country to implement the B50 mandate. According to him, this policy is not just a technological achievement but proof of Indonesia’s ability to utilise its natural wealth for the people’s interest. He added that the government has long been pushing for the realisation of energy independence. According to him, the previous implementation of B40 was insufficient, so the government increased the biodiesel blend to B50. The President also urged scientists and experts to continue innovating to increase the biodiesel content beyond 50 percent. The Mandatory B50 Programme requires a 50 percent biodiesel blend in diesel fuel. This policy is part of the government’s efforts to reduce dependence on fuel imports, increase the added value of national natural resources, and strengthen energy security and sovereignty.