Prabowo rolls out B50 biodiesel program to boost energy sovereignty

Karawang, W. Java (ANTARA) - President Prabowo Subianto officially launched the mandatory 50 percent biodiesel (B50) program in West Java on Thursday, marking a historic milestone toward national energy sovereignty and curbing dependence on imported fuel.

Indonesia stands as the first country in the world to implement a mandatory 50 percent biodiesel mixture, Prabowo announced.

The Head of State noted that this milestone demonstrates the nation's capability to leverage its rich natural endowment for the direct benefit of its people.

"This is proof that Indonesia is capable of utilizing its own natural resources to benefit its own people. This is an important milestone for the nation's independence," President Prabowo emphasized.

He explained that while the government previously rolled out B40, escalating the ratio to B50 was necessary to stop diesel imports entirely.

Although he initially advocated for B100, cabinet ministers assured him that a 50 percent blend would fully satisfy domestic independence goals without foreign diesel purchases.

Beyond biofuel, the President pointed out that Indonesia possesses significant energy potential across coal and natural gas reserves, including vast gas fields recently discovered in Andaman, Masela, Natuna, and Kalimantan.

Leveraging these resources for compressed natural gas (CNG) is expected to eliminate the need for imported liquefied petroleum gas (LPG) as well.

To build on this momentum, the President called upon researchers and technical experts to continue innovating to push biodiesel concentration beyond 50 percent in the near future.

By mandating that all domestic diesel fuel consist of a 50 percent palm-oil-based biodiesel blend, the government expects immediate structural benefits across the state budget, labor market, and environment.

Prior to the nationwide rollout, the government thoroughly tested the blend across six operational sectors: automotive, agricultural machinery, heavy mining equipment, maritime transport, power generation, and railways.

From a macroeconomic perspective, implementing B50 is projected to increase foreign exchange savings from Rp133.3 trillion (approximately US$7.41 billion) under the B40 program to roughly Rp170 trillion (US$9.44 billion) by the end of 2026.

Additionally, the program is expected to drive the added value of crude palm oil (CPO) from Rp20.92 trillion (US$1.16 billion) up to Rp23.49 trillion (US$1.31 billion), sustain and create around 2.1 million jobs, and reduce greenhouse gas emissions by 44.46 million tons of CO2 equivalent by 2026.

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Translator: Maria Cicilia Galuh Prayudhia, Yashinta Difa

Editor: Arie Novarina

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