RI could lead high-blend biodiesel adoption with B50

Jakarta (ANTARA) - Indonesia could become a global pioneer in high-blend biodiesel adoption when it launches B50 in July 2026, potentially strengthening energy security and reducing dependence on imported diesel, an economist said.

Hendry Cahyono, an economist at Surabaya State University (Unesa), said Indonesia's planned implementation of B50, a fuel blend containing 50 percent palm oil-based biodiesel, would place the country ahead of many countries that still use lower biodiesel blends.

"Indonesia has the opportunity to become a pioneer in implementing high-blend biodiesel," Hendry said in a statement received in Jakarta on Friday (June 19).

He noted Malaysia currently applies biodiesel blends ranging from B10 to B20, while Thailand uses around B20. Several European countries, meanwhile, use biodiesel blends of about 7 to 10 percent.​​​​​​​

Related news: Indonesia's state railway operator prepares full transition to B50

Hendry explained the use of B50 could significantly reduce Indonesia's energy imports, particularly diesel imports, potentially improving the country's trade balance and supporting the rupiah exchange rate.

"If implemented as planned, it would indeed reduce imports. One of the impacts could also be an appreciation of the rupiah exchange rate," he noted.

The government estimates that implementing B50 could allow Indonesia to stop importing diesel and save up to Rp157 trillion in foreign exchange.

According to Hendry, the target is achievable if the government has carefully calculated feedstock requirements, biodiesel industry capacity, and financing schemes.

Related news: Indonesia to launch B50 biodiesel policy on July 1 to cut imports

He said the B50 mandate could become an important project in strengthening national energy security by increasing the use of domestically sourced fuels and reducing reliance on external supplies.

"If B50 is adopted and industrial sectors also use B50, it could become one of the pilot projects for energy security," Hendry said.

He added the policy could spur growth in the domestic biodiesel industry by attracting new investment, increasing biodiesel plant utilization, and creating multiplier effects for the palm oil plantation and processing sectors.

However, Hendry cautioned that environmental sustainability must be safeguarded. Rising demand for palm oil, he said, should be met through productivity gains and technological improvements rather than large-scale plantation expansion that could trigger deforestation and increase carbon debt.

Related news: B50 biodiesel could save Indonesia US$9.18 billion in forex by 2026

Translator: Putu Indah Savitri, Martha Herlinawati Simanjuntak

Editor: Fransiska Ninditya

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