Indonesia Becomes First Country to Launch B50 Biodiesel Fuel
President Prabowo Subianto officially launched B50 biodiesel, a diesel fuel blend containing 50% palm oil-based biofuel, in Karawang on Thursday, 9 July 2026. The launch makes Indonesia the first country in the world to implement a mandatory B50 biodiesel programme. The strategic policy aims to reduce dependence on imported diesel, enhance the added value of national natural resources, and maintain economic resilience and energy sovereignty.
The event was attended by Minister of Energy and Mineral Resources Bahlil Lahadalia, Coordinating Minister for Economic Affairs Airlangga Hartarto, Minister of Investment and Downstreaming and CEO of Danantara Rosan Perkasa Roeslani, and President Director of Pertamina Simon Aloysius Mantiri, among other cabinet ministers.
In his speech, Prabowo stated that the B50 mandate is not merely a technological achievement but proof that Indonesia can utilise its own natural wealth for the benefit of its people. He described the launch as an important milestone in the journey towards energy self-sufficiency. Prabowo also emphasised that a nation’s survival depends on its ability to produce its own food, energy, and water, and reiterated his long-standing commitment to achieving self-sufficiency in food and energy.
Minister Bahlil Lahadalia confirmed that with the implementation of B50, Indonesia will cease importing diesel this year. He noted that national diesel consumption reaches 38 to 40 million kilolitres per year, with previous imports of around 3 to 4 million kilolitres annually. Bahlil acknowledged the challenge of accelerating the programme, which typically requires up to a decade for such a significant increase in blend ratio, but stressed that the President’s directive was driven by the imperative of national energy sovereignty.
The legal basis for the B50 mandate includes Minister of Energy and Mineral Resources Regulation No. 4 of 2025 and Ministerial Decree No. 257.K/EK.01/MEM.E/2026, which require a 50% biodiesel blend in all diesel fuel. A three-month transition period until 30 September 2026 will allow existing B40 stocks to be depleted before B50 becomes available at public fuel stations. The Ministry of Energy and Mineral Resources confirmed comprehensive preparations covering technical aspects, supply and distribution, and regulation. Comprehensive testing across six diesel engine sectors—automotive, agricultural machinery, mining heavy equipment, marine transport, railways, and power generation—has indicated that B50 is safe and meets performance and compatibility standards. The programme is projected to save Rp170 trillion in foreign exchange, increase the added value of crude palm oil to Rp23.49 trillion, and absorb approximately 2.1 million workers, while also reducing greenhouse gas emissions.