Indonesia pioneers global B50 policy for energy, economic boost
Officially launched on July 1, the B50 program serves as a strategic initiative to strengthen national economic and energy resilience, according to Head of the Indonesian Government Communications Agency (Bakom) Muhammad Qodari.
“This policy is part of the government’s strategic agenda to reduce dependence on imported fuel, increase the added value of national natural resources and maintain Indonesia’s economic and energy resilience,” Qodari said in his statement on Monday (July 13).
The mandatory B50 program requires a strict fuel mixture comprising 50 percent petroleum diesel and 50 percent vegetable oil-based biofuel. Currently, the initiative is rolling out in phases under a three-month transition period.
“The target is that by October 1, 2026, all gas stations will be selling B50,” Qodari added, recalling that Indonesia’s mandatory biodiesel journey first commenced in 2008 with B2.5 before steadily expanding to the current B50 milestone.
The government projects that transitioning to B50 will eliminate diesel imports, saving the state up to Rp170 trillion (approximately US$9.38 billion) in foreign exchange reserves by the end of 2026.
Furthermore, the program is expected to drive up the added value of domestic crude palm oil (CPO) by Rp23.49 trillion (US$1.30 billion) while sustaining employment for roughly 2.1 million workers across the industry.
From an environmental perspective, the transition is projected to cut greenhouse gas emissions by up to 44.46 million tons of carbon dioxide (CO2 ) this year.
Addressing potential concerns regarding automotive and industrial compatibility, Qodari assured the public that comprehensive technical tests have already been completed across various diesel engine sectors to guarantee safety, performance, and mechanical suitability.
“From the supply and distribution perspective, the government is ensuring the readiness of biodiesel production capacity, raw material availability as well as blending and distribution infrastructure,” he said.
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Translator: Fathur Rochman, Yashinta Difa