Indonesian Political, Business & Finance News

President to Launch B50 Biodiesel Programme Today, Key Facts to Know

| | Source: REPUBLIKA Translated from Indonesian | Energy
President to Launch B50 Biodiesel Programme Today, Key Facts to Know
Image: REPUBLIKA

President Prabowo Subianto is scheduled to launch the Mandatory B50 Biodiesel Programme on Thursday (9/7/2026) at the KM 57 Rest Area in Karawang Regency, West Java. The launch, accompanied by Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia, marks the commencement of a 50 percent biodiesel blend in diesel fuel.

The B50 programme is a strategic government policy aimed at reducing dependence on imported fuel oil (BBM), increasing the added value of national natural resources, and strengthening Indonesia’s energy and economic resilience. This policy is a continuation of the previously implemented B40 programme.

Here are several facts regarding the implementation of the Mandatory B50 Biodiesel Programme:

  1. B50 Officially Becomes a National Mandate

The B50 programme mandates a 50 percent biodiesel blend in all diesel fuel types. The government describes this policy as a step to strengthen national energy independence, security, and sovereignty.

  1. Legal Basis

The implementation of B50 refers to Minister of Energy and Mineral Resources Regulation Number 4 of 2025 concerning the Business and Utilisation of Biofuel and Minister of Energy and Mineral Resources Decree Number 257.K/EK.01/MEM.E/2026 regarding the obligation to blend 50 percent biodiesel in diesel fuel.

  1. Sanctions for Business Entities

Fuel oil business entities that fail to comply with the blending obligation, as well as biofuel business entities that do not distribute biodiesel according to the target, may be subject to administrative sanctions. These sanctions range from written warnings and temporary suspension of activities to the revocation of business licences in accordance with applicable regulations.

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