Indonesian Political, Business & Finance News

Launching B50 Biodiesel, Prabowo Claims Indonesia Saves Rp 170 Trillion

| | Source: REPUBLIKA Translated from Indonesian | Energy
Launching B50 Biodiesel, Prabowo Claims Indonesia Saves Rp 170 Trillion
Image: REPUBLIKA

President Prabowo Subianto has stated that the implementation of the mandatory B50 biodiesel programme will have a significant impact on strengthening the national economy. He calculated that the country could save up to hundreds of trillions of rupiah, or approximately USD 10 billion, in foreign exchange each year.

He noted that these savings are the result of the hard work of various ministries in promoting the use of energy based on national natural resources. “We can now save foreign exchange outflows of Rp 170 trillion. We save USD 10 billion,” Prabowo said at the launch of the Mandatory B50 Biodiesel programme at the KM 57 rest area, Karawang Regency, West Java, on Thursday (9/7/2026).

According to him, the savings of around USD 10 billion from the mandatory B50 biodiesel programme represent a strategic step to strengthen energy security. This move simultaneously reduces dependence on fuel imports.

Prabowo explained that the government is also continuing to pursue efficiencies in other sectors to strengthen state finances. One such effort is through the eradication of commodity smuggling, including tin, which is estimated to potentially save up to USD 2-3 billion in foreign exchange.

“We save USD 10 billion here (mandatory B50), later we will save in other areas. Tin smuggling, we save USD 2-3 billion, and so on,” Prabowo said.

According to him, these various efficiency measures are part of the government’s strategy to strengthen national economic independence. Furthermore, they aim to enhance energy security and ensure that Indonesia’s natural resources provide maximum benefits for the people’s welfare.

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia conveyed that the implementation of the mandatory B50 biodiesel can save the country’s foreign exchange by reducing Indonesia’s need to import diesel. This figure is an increase from the mandatory B40 policy, which saved Rp 133 trillion in foreign exchange.

In addition to saving foreign exchange, the B50 programme is estimated to increase the added value of crude palm oil (CPO) from Rp 20.92 trillion to around Rp 23.49 trillion. It is also expected to absorb approximately 2.1 million workers and reduce greenhouse gas emissions by up to 44.46 million tonnes of CO2 in 2026.

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