IESR: B50 Implementation Can Reduce Dependence on Diesel Imports

The implementation of B50 can help improve Indonesia’s trade balance by reducing imports of diesel fuel.

Jakarta (ANTARA) — Fabby Tumiwa, Chief Executive Officer of the Institute for Essential Services Reform (IESR), said the implementation of B50 could reduce Indonesia’s dependence on imported diesel fuel.

“The implementation of B50 can help improve Indonesia’s trade balance by reducing diesel oil imports,” Fabby Tumiwa said in a statement in Jakarta on Thursday.

Nevertheless, he continued, the implementation of B50 needs to be reinforced and complemented by a mutually reinforcing policy mix in order to achieve energy security.

“The government still needs to pursue a complementary policy mix, such as accelerating transport electrification and implementing fuel economy standards, which are considered more cost-effective in curbing fuel imports whilst strengthening long-term energy independence,” he said.

The use of B50 itself will deliver greater economic benefits when global crude oil prices are at high levels due to global uncertainty.

For context, President Prabowo Subianto launched the 50 per cent Biodiesel Mandatory Programme (B50) in Karawang Regency, West Java, on Thursday, as a step towards strengthening energy independence and reducing dependence on imported fuel oil.

The President said Indonesia is the first country to implement the B50 mandate.

According to him, the policy is not merely a technological achievement, but proof of Indonesia’s ability to harness its natural wealth for the benefit of its people.

He added that the government has long been pushing to realise energy independence.

In his view, the previous implementation of B40 was insufficient, so the government raised the biodiesel blend to B50.

The President also asked scientists and experts to continue innovating to increase the biodiesel content above 50 per cent.

The B50 Mandatory Programme requires a 50 per cent blend of biodiesel in diesel fuel. The policy forms part of the government’s efforts to reduce dependence on imported fuel, increase the added value of national natural resources, and strengthen energy resilience and sovereignty.