New B50 Fuel Ready for Launch, Indonesia Could Save IDR 157.28 Trillion in Foreign Exchange
Lembang, CNBC Indonesia - The Ministry of Energy and Mineral Resources projects foreign exchange savings for the country reaching IDR 157.28 trillion through the planned implementation of mandatory 50% biodiesel or B50. The target is for the B50 programme to be implemented starting from 1 July 2026.
The Director General of New, Renewable Energy, and Energy Conservation (EBTKE) of the Ministry of ESDM, Eniya Listiani Dewi, confirmed that technical preparations through road tests (road test) for B50 are currently underway in various sectors. The implementation of B50 will then be carried out simultaneously starting from 1 July 2026.
“Insyaallah in accordance with the directives, it can be on 1 July. All sectors will switch to B50, not some staying at 40 and others at 50, which would complicate the infrastructure; thus, it will start simultaneously. All sectors in Indonesia,” she said when met at the B50 Road Test Fuel Blending and Filling Station, Lembang, quoted on Wednesday (22/4/2026).
Citing data from the Ministry of ESDM, the potential foreign exchange savings of IDR 157.28 trillion is an increase compared to the B40 programme savings target of IDR 140 trillion. In addition, the implementation of B50 is predicted to absorb more than 2.2 million workers and reduce greenhouse gas emissions by 46.72 million tonnes of CO2.
“Because it has always been considered, the Minister of Agriculture has also announced an increase, so if I look at the volume, it is monitored. The supply, as I said earlier, we are still calculating, but it is sufficient; if I predict, the FAME supply is sufficient,” Eniya continued.
In addition, the specifications for B50 fuel are being tightened to ensure optimal engine performance, including limiting water content to a maximum of 300 ppm. The latest test results show that the water content in B50 is at 208.81 ppm, or better than the required maximum limit.
“That means below 300 ppm. Better because lower is better. If there is more water, that’s what is often mentioned affects engine performance. So we emphasise that the water content should be as low as possible. And here, the engine performance reported no filter changes,” she explained.
Thus, the government targets the completion of all testing in the automotive sector by June 2026. Meanwhile, the national biodiesel distribution realisation up to mid-April 2026 has reached 3.90 million kilolitres, or about 24.9% of the initial yearly allocation of 15.65 million kilolitres.
The government targets the completion of all trials in the automotive sector by June 2026, while other strategic sectors such as heavy equipment and railways will be completed gradually until the end of the year. With interim test results showing reliable and safe performance, B50 is ready to strengthen national energy independence.