Indonesia rolls out B50 biodiesel to bolster energy security:�BPDP

Jakarta (ANTARA) - Indonesia will raise its mandatory biodiesel blend to 50 percent (B50) from July 1, 2026, to strengthen energy security, reduce imported fossil fuel use and increase the value of the country's palm oil industry.

The policy also aims to accelerate energy self-sufficiency by lowering dependence on imported fossil fuels, President Director of the Plantation Fund Management Agency (BPDP) Eddy Abdurrachman said in a statement issued in Jakarta on Monday.

"The biodiesel program has become a strategic instrument for strengthening national energy security while creating a strong domestic market for Indonesian palm oil products," he said.

Eddy said the B50 mandate builds on the success of Indonesia's biodiesel program over the past several years.

He said the policy has reduced diesel imports, lowered carbon dioxide emissions and strengthened the palm oil industry by boosting domestic consumption and improving smallholder incomes.

According to the Energy and Mineral Resources Ministry, the biodiesel program saved Rp722.9 trillion (about US$44.5 billion) in foreign exchange during 2015-2025.

It also generated Rp114.7 trillion (about US$7.1 billion) in added value from crude palm oil processing, supported 10.9 million jobs in the palm oil sector and cut greenhouse gas emissions by 228.41 million metric tons of carbon dioxide equivalent.

"These achievements show the biodiesel program has become not only an energy security instrument but also a driver of economic growth, downstream palm oil industries and job creation," Eddy said.

He said the B50 mandate demonstrates the alignment of Indonesia's energy policy with sustainable palm oil industrial development while expanding the use of domestically produced renewable energy.

Eddy said the successful rollout of B50 has been supported by continued upstream initiatives, including smallholder palm replanting, human resource development, research and improved plantation infrastructure.

Those programs are designed to secure feedstock supplies while transforming the palm oil sector through higher productivity, innovation, sustainability and stronger support for smallholders.

BPDP, which manages funding for Indonesia's palm oil-based biofuel program, will continue supporting implementation through accountable and sustainable fund management.

Looking ahead, BPDP will support government efforts to expand palm oil-based renewable energy while improving the productivity, sustainability and global competitiveness of Indonesia's palm oil industry, Eddy said.

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Translator: Subagyo, Raka Adji

Editor: Rahmad Nasution

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