Indonesia Becomes Global Talking Point with B50 Biodiesel Launch, Says Prabowo

President Prabowo Subianto has stated that Indonesia is becoming a global centre of attention, particularly with the introduction of diesel fuel blended with 50% palm oil-based biofuel, known as B50. Speaking at the launch of the B50 Mandate in Karawang, West Java, on Thursday, Prabowo said Indonesia is the first country to introduce environmentally friendly B50 fuel. “Today is very historic, we are being talked about around the world. We are leading in reducing carbon emissions, they know we have the B50 programme,” Prabowo explained. According to Prabowo, the B50 programme will allow Indonesia to reduce carbon emissions by up to 44 million tonnes of carbon dioxide equivalent. “This is just B50. Imagine later when the world also knows we are going to build 100 Gigawatts of solar power,” he added. Minister of Energy and Mineral Resources Bahlil Lahadalia confirmed that with the implementation of the B50 mandate, Indonesia will cease diesel imports this year. Bahlil noted that Indonesia’s diesel consumption reaches 38 to 40 million kilolitres per year. “Initially, we still imported around 3 to 4 million kilolitres per year. With the implementation of B50, we will no longer import diesel. This is the first time,” Bahlil said. He explained that achieving B50 was not an easy task, as increasing biodiesel blends typically requires up to 10 years, including a 3-year trial phase. “But the President’s order was to find a way to implement B50 in 2026. We interpret this not just as a technical matter, but as a question of national sovereignty and independence for our own energy,” Bahlil stressed. The legal basis for the B50 Biodiesel Mandate Programme is Minister of Energy and Mineral Resources Regulation No. 4 of 2025 and Decree No. 257.K/EK.01/MEM.E/2026. The policy mandates a 50% biodiesel blend for all diesel fuel types. The government has provided a three-month transition period until 30 September 2026 before B50 is available at public fuel stations, allowing time to deplete existing B40 stocks. The Ministry of Energy and Mineral Resources confirmed readiness through comprehensive testing across six diesel engine sectors: automotive, agricultural machinery, heavy mining equipment, marine transport, power generation, and railways. Results indicate B50 is safe and meets performance and compatibility standards. The B50 mandate is projected to deliver significant economic and environmental benefits, including foreign exchange savings of Rp 170 trillion, an increase in crude palm oil added value to Rp 23.49 trillion, absorption of 2.1 million workers, and a reduction of 44.46 million tonnes of CO2 equivalent in greenhouse gas emissions in 2026.