Prabowo: B50 Mandatory Programme Saves State Rp170 Trillion in Foreign Exchange
Karawang Regency (ANTARA) - President Prabowo Subianto said the implementation of the mandatory B50 biodiesel policy will have a major impact on strengthening the national economy by saving up to Rp170 trillion, or around US$10 billion, in foreign exchange each year.
The President emphasised that these savings are the result of hard work by many parties in promoting the use of energy based on the nation’s natural resources.
“We can now save Rp170 trillion in foreign exchange — US$10 billion that is not leaving the country,” Prabowo said in his remarks at the launch of the Mandatory B50 Biodiesel programme at the KM 57 Rest Area in Karawang Regency, West Java, on Thursday.
According to him, the savings of around US$10 billion from the mandatory B50 biodiesel programme represent a strategic step to strengthen energy resilience whilst reducing dependence on imported fuel.
He said the government is also pursuing efficiency in other sectors to shore up state finances, including through the eradication of commodity smuggling, notably tin, which is estimated to have the potential to save US$2-3 billion in foreign exchange.
“We save US$10 billion here from the B50 mandate, and later we will save in several other areas. Tin smuggling — we save US$2-3 billion, and so on,” he said.
The President stressed that these various efficiency measures form part of the government’s strategy to strengthen national economic self-reliance, improve energy security, and ensure that Indonesia’s natural wealth delivers the greatest possible benefit to the people’s welfare.
On the same occasion, Minister of Energy and Mineral Resources Bahlil Lahadalia said the implementation of the mandatory B50 biodiesel policy could save the state around Rp170 trillion in foreign exchange by reducing Indonesia’s need to import diesel fuel.
That figure is an increase from the mandatory B40 policy, which saved Rp133.3 trillion in foreign exchange.
Beyond saving foreign exchange, the B50 programme is estimated to raise the added value of crude palm oil (CPO) from Rp20.92 trillion to around Rp23.49 trillion, absorb some 2.1 million workers, and reduce greenhouse gas emissions by approximately 44.46 million tonnes of CO2 in 2026.