B50 program to save Indonesia Rp170 trillion in 2026: Ministry

Jakarta (ANTARA) - The Energy and Mineral Resources (ESDM) Ministry hailed the implementation of the mandatory B50 biodiesel program as it provides tangible economic benefits for Indonesia while significantly bolstering national energy independence.

ESDM Ministry spokesperson Dwi Anggia stated Friday that this transformation marks a new era where national energy sovereignty is directly driven by domestic commodities rather than foreign imports.

Under the B50 blend, she noted, half of every liter of diesel consumed nationwide is derived from crops grown and harvested by local Indonesian farmers.

“The B50 program provides real economic benefits for the country. It is projected to save Indonesia around Rp170 trillion (approximately US$10.8 billion) in foreign exchange throughout 2026,” Anggia said in her statement.

These massive savings, according to Anggia, are crucial for funding national development and insulating the economy from volatile global oil market fluctuations.

She added that the macro-economic benefits extend to the labor market, with the program is expected to create up to 2.1 million new jobs across the country.

Beyond its economic impact, the B50 mandate is serving as a cornerstone for Indonesia's climate goals. The ministry projects the shift to biodiesel will reduce greenhouse gas emissions by up to 44.46 million tons of CO2 over the course of 2026.

To ensure optimal execution, the ministry is continuously monitoring technical and operational implementation in the field.

The government also maintains intensive coordination with various sectors, ranging from automotive manufacturers to industrial players.

Anggia emphasized that the transition to B50 is not merely an energy diversification effort.

The gradual and carefully tested roadmap serves as a strategic state instrument designed with the primary objective of maximizing public welfare and economic prosperity.

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Translator: Ahmad Muzdaffar Fauzan, Yashinta Difa

Editor: M Razi Rahman

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