Indonesian Political, Business & Finance News

Video: Starting 1 July, DPR Pushes for B50 Safety for Vehicle Engines

| Source: CNBC Translated from Indonesian | Energy
Video: Starting 1 July, DPR Pushes for B50 Safety for Vehicle Engines
Image: CNBC

Jakarta, CNBC Indonesia - Commission XII of the Indonesian House of Representatives fully supports the government’s move to implement the mandatory 50% biodiesel blending programme, or B50, starting 1 July 2026.

Deputy Chairman of Commission XII of the House of Representatives, Sugeng Suparwoto, stated that biodiesel serves as an alternative energy source amid global energy sector challenges, including rising world crude oil prices and environmental issues. The development of B50 is expected to serve as a strategy to curb Indonesia’s dependence on oil and fuel imports, thereby reducing the energy subsidy burden while boosting the selling price of Crude Palm Oil (CPO), one of Indonesia’s flagship export commodities.

B50 requires around 16 million tonnes per year, and with annual production reaching 50 million tonnes, Indonesia’s palm oil supply is assured to be sufficient. However, the government must promote a palm replanting programme to ramp up production and counter the decline in CPO output.

On the other hand, the House of Representatives is pushing for strengthened B50 production and processing systems to ensure that the B50 product remains compatible with diesel vehicle engines and has low sediment levels.

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