Prabowo Closely Monitors B50 Fuel, Here's the Price at Pertamina Petrol Stations

Jakarta, CNBC Indonesia - President Prabowo Subianto summoned the President Director of PT Pertamina (Persero), Simon A. Mantiri, to his residence in Hambalang, West Java, on Sunday (9/8/2026). The meeting concerned, among other things, the implementation of the mandatory B50 programme, or diesel fuel with a 50% biodiesel blend.

Cabinet Secretary Teddy Indra Wijaya stated that Simon reported on the progress of the B50 implementation, which President Prabowo launched in July. The programme is one of the government’s measures to strengthen national energy independence and security through increased utilisation of domestic energy sources.

“Pertamina’s President Director reported on the progress of the Mandatory B50 (Biodiesel 50%) Programme, which President Prabowo launched last July, as well as infrastructure readiness in the preparatory stages for the government’s bioethanol mandate,” said Teddy, as quoted from an official statement.

In addition to discussing the energy security agenda, the President also provided directives regarding the improvement of state-owned enterprise governance. The Head of State ordered a reduction in organisational layers as well as subsidiary and sub-subsidiary companies at Pertamina, PLN, and other state-owned enterprises (SOEs).

“In the meeting, President Prabowo also ordered a reduction in layers and subsidiary and sub-subsidiary companies at Pertamina, PLN, and other SOEs,” wrote the Cabinet Secretary.

The simplification of the structure is directed at creating SOEs that are more agile and productive. With a shorter bureaucratic chain, the decision-making process is expected to proceed more quickly while maintaining the efficiency of state-owned companies.

“The streamlining is intended to make decision-making faster, increase productivity, and better maintain the efficiency of all SOEs,” he concluded.

As for the price of subsidised B50 Biosolar at Pertamina petrol stations, it is set at Rp6,800 per litre, the same as the previous subsidised diesel fuel price. Previously, this Biosolar fuel was blended with biodiesel at a 40% mixture (B40).

The Director General of New, Renewable Energy, and Energy Conservation (EBTKE) at the Ministry of Energy and Mineral Resources, Eniya Listiani Dewi, explained that the pricing will continue to refer to the current applicable regulations.

According to her, the government is preparing the price formula based on those rules. The benchmark price for B50 will be released regularly every month. The aim is to provide price certainty, both for business actors and the public as consumers, when the policy officially takes effect.

“It follows the formula. If it follows the formula, we issue the price every month,” she said when met at the B50 Road Test Blending and Fuel Filling Station in Lembang, as quoted on Thursday (9/7/2026).

Based on data from the Ministry of Energy and Mineral Resources, the implementation of the B50 programme is projected to provide significant economic benefits for the country through increased added value of crude palm oil (CPO).

From a fiscal perspective, the policy has the potential to save up to Rp157.28 trillion in foreign exchange in 2026, an increase from the initial B40 programme target of Rp140 trillion.

“Regarding supply, as I said, we are still calculating, but I predict it is sufficient, the FAME supply is sufficient,” said Eniya when asked about the readiness of raw materials for the July implementation.

The government is targeting the initial implementation of B50 to begin in July 2026, in line with global energy dynamics and efforts to strengthen national energy security.

“We are adjusting with the Director General of Oil and Gas. The import reduction target is calculated at 50%. Currently, biodiesel absorption is approximately 25%,” said Eniya.

As for the market index price (HIP) for fatty acid methyl esters (FAME), or pure biodiesel (before being blended with diesel fuel), in August 2026 has been set at Rp14,924 per litre, up from the July 2026 period of Rp14,562 per litre.

The formula used for the biodiesel HIP is: Average CPO KPB (PT Kharisma Pemasaran Bersama Nusantara) price + US$85 per tonne) x 870 kg/m3 + transport costs.

The average CPO KPB price calculated from the period 25 June 2026 - 24 July 2026 was Rp15,626/kg.

Meanwhile, US$85/MT is the conversion value of raw material into biodiesel, with 870 kg/m3 being the unit factor from kg to litres. The exchange rate uses the average Bank Indonesia middle rate for the period 25 June - 24 July 2026 of Rp17,985.

The transport costs are stipulated in the Minister of Energy and Mineral Resources Decree Number 290.K/EK.05/MEM.E/2025 concerning the Market Index Price of Biofuel in the Form of Biodiesel Blended into Fuel Oil.