Indonesia Becomes Global Talking Point with B50 Biodiesel Launch, Says Prabowo
Karawang, CNBC Indonesia – President Prabowo Subianto has stated that Indonesia has become the centre of world attention, particularly with the launch of diesel fuel blended with 50 per cent palm oil-based biodiesel, known as B50.
According to Prabowo, this is because Indonesia is the first country to introduce environmentally friendly B50 fuel.
“Today is truly historic; we are being talked about around the world. We are leading in reducing carbon emissions, we are leading, and they know we have the B50 programme,” Prabowo said at the official launch of the mandatory B50 programme in Karawang, West Java, on Thursday (9/7/2026).
Prabowo said that with B50, Indonesia can reduce carbon emissions by up to 44 million tonnes of CO2 equivalent. “And that is just B50 – what about when the world also learns that we will build 100 gigawatts of solar power,” he added.
Meanwhile, Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia affirmed that with the implementation of mandatory B50, Indonesia will be free from diesel imports this year. In his remarks, Bahlil noted that Indonesia’s diesel consumption reaches 38 to 40 million kilolitres per year.
“Previously, we still imported roughly 3 to 4 million kilolitres per year. With the implementation of B50, we will no longer import diesel – this is a first,” Bahlil explained at the launch of the mandatory B50 programme in Karawang on Thursday (9/7/2026).
Bahlil stressed that achieving B50 was no easy task. Normally, raising the biodiesel blending ratio takes up to ten years, including three years of trials.
“But the President ordered that B50 must be implemented in 2026. We interpret this not merely as a technical matter, but as a question of sovereignty and national energy independence,” Bahlil asserted.
B50 by the numbers
For the record, the legal basis for the mandatory B50 biodiesel programme is Minister of Energy and Mineral Resources Regulation Number 4 of 2025 on the Cultivation and Utilisation of Biofuels, as well as Ministerial Decree Number 257.K/EK.01/MEM.E/2026 on the Obligation to Blend 50 Per Cent Biodiesel with Diesel Fuel, financed through the Plantation Fund Management Agency (BPDP).
The policy mandates a 50 per cent biodiesel blend for all types of diesel fuel. In its implementation, biofuel businesses, oil fuel businesses and distributors are required to apply standards and quality specifications that have been set.
Following today’s launch, the government has provided a three-month transition period, until 30 September 2026, before B50 is sold at public filling stations (SPBU). The transition applies to allow existing stocks of B40-blended biodiesel to be used up.
According to data from the Ministry of Energy and Mineral Resources, the government has ensured readiness for B50 implementation through comprehensive preparations covering technical aspects, supply and distribution, and regulation. On the technical side, the government conducted testing of B50 across various diesel engine user sectors to ensure performance, safety and compatibility.
On supply and distribution, the government has confirmed the readiness of biodiesel production capacity, availability of raw materials, and blending and distribution infrastructure.
B50 has been comprehensively tested across six diesel engine user sectors: automotive, agricultural machinery, mining heavy equipment, maritime transport, power generation, and railways.
The trials involved various parties, including ministries and agencies, state enterprises, associations, academics, technology owners, industrial users, and other relevant stakeholders.
“Some tests are still ongoing, but preliminary results show that B50 is safe to use and meets performance and compatibility requirements across a range of diesel engine applications,” the ministry stated.
The implementation of B50 is expected to deliver significant economic and environmental benefits. In 2025, the B40 programme saved Rp133.3 trillion in foreign exchange, and with mandatory B50 in 2026, this is projected to rise to around Rp170 trillion.
In addition, B50 is expected to increase the added value of crude palm oil (CPO) from Rp20.92 trillion to around Rp23.49 trillion, and to absorb approximately 2.1 million workers. “The mandatory B50 fuel programme will reduce greenhouse gas emissions by around 44.46 million tonnes of CO2 in 2026,” the Ministry of Energy and Mineral Resources asserted.