Indonesia can save Rp177 trillion from B50 biodiesel program: Minister

Jakarta (ANTARA) - Indonesia's B50 biodiesel program could save up to Rp177 trillion (about US$10.9 billion) in foreign exchange, eliminate diesel imports and reduce carbon emissions by 44 million metric tons annually, Coordinating Minister for Economic Affairs Airlangga Hartarto said.

The mandatory fuel blend, containing 50 percent palm oil-based biodiesel and 50 percent diesel, is also expected to strengthen the country's energy security, he said.

"President Prabowo Subianto has launched the B50 program. It proves Indonesia can become self-reliant because B50 will eliminate the need for fuel imports," Airlangga said on Friday.

"We will save Rp177 trillion in foreign exchange and support our net-zero emissions target by reducing 44 million metric tons of carbon dioxide equivalent," he said.

Airlangga said the B50 program would end Indonesia's reliance on imported diesel while positioning the country as a leader in renewable energy.

"B50 is a world first. No other country has implemented this program," he said.

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He said the biodiesel mandate is part of the government's strategy to strengthen energy security amid rising global uncertainty.

A stronger domestic economy is essential to withstand global challenges, particularly disruptions to supply chains, he said.

"With geopolitical conflicts in Ukraine and the Strait of Hormuz unresolved, alongside technological disruption from artificial intelligence, Indonesia must strengthen its economic foundations," Airlangga said.

He said President Prabowo had instructed ministers to prioritize food and energy self-sufficiency in response to global volatility.

Beyond the biodiesel mandate, the government is also preparing a 100-gigawatt solar power program to accelerate the country's energy transition.

"The President is pushing the 100-gigawatt solar program, supported by a downstream electric vehicle battery ecosystem for both transportation and energy storage," Airlangga said.

Related news: President says B50 biofuel and dams boost national self-reliance

Translator: Bayu Saputra, Uyu Liman

Editor: Rahmad Nasution

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