Mandatory 'New Fuel' B50 Takes Effect Tomorrow, Amran Reveals Fate of Indonesian CPO

Agriculture Minister Amran Sulaiman has confirmed that the inaugural implementation of the mandatory B50 biodiesel programme will begin on Wednesday, 1 July 2026. The government has assured that the supply of crude palm oil (CPO) raw material is sufficient, ensuring the programme is ready to proceed. “Oh yes, tomorrow, 1 July 2026,” Amran said when met at his office in Jakarta on Tuesday (30/6/2026). Amran explained that the demand for B50 biodiesel reaches 46.5 million kilolitres (KL). To meet this, the government has prepared a CPO supply of 23.3 million tonnes, which will be processed into approximately 20 million tonnes of biodiesel or FAME. This production is supported by 26 existing biodiesel plants and 17 new plants, bringing the total projected B50 biodiesel production to 40 million tonnes. Amran noted that CPO availability is currently increasing in line with rising exports. “Now our exports are up. Previously 26 million tonnes, now 32 million tonnes, an increase of 6 million tonnes,” he said. He also confirmed that the B50 implementation is no longer a trial phase but a continuation of the already running B40 programme. “Oh, it’s safe, there’s more than enough CPO supply. It’s already safe, it’s not a trial, it’s already running. B40 is already running, we’re just moving up to B50, it’s already running,” Amran stressed. When asked whether B50 would be available at all petrol stations, Amran reiterated there were no obstacles. “It’s safe, completely safe,” he said. Regarding plans for a presidential inauguration of the programme, Amran did not provide details on the location. “Just wait,” he said briefly. Amran further stated that the implementation of B50 marks a significant milestone for the national energy sector. According to him, starting 1 July 2026, Indonesia will officially stop importing around 5 million tonnes of diesel thanks to the utilisation of palm oil as an energy feedstock. “Today is a historic milestone. No more diesel imports of 5 million tonnes. That’s why the attacks are relentless. Other countries are afraid. We have discussions with other countries,” he said. Amran assessed that the flexibility of using CPO for biodiesel or for export could serve as an instrument for Indonesia to maintain global commodity price balance. “I was once asked, ‘Mr Minister, what about B50, B30, and so on?’. Now it’s B50, if possible B70, B100 is no problem. But for me, when the price is high, we release it for export. So we play the world, don’t let the world play us. When the world price drops, we pull it back and turn it into diesel. And we can control the world through food,” he concluded.