Jakarta: Indonesia’s Ministry of Energy and Mineral Resources (ESDM) said the mandatory B50 biodiesel programme is expected to save the country around Rp170 trillion (US$10.8 billion) in foreign exchange this year while strengthening energy security and supporting economic growth.
In a statement on Friday, ministry spokesperson Dwi Anggia said the B50 programme marked a significant step towards energy independence by increasing the use of domestically produced biofuel and reducing reliance on imported diesel, Antara News reported.
Under the B50 mandate, 50% of every litre of diesel fuel consumed in the country is blended with biodiesel produced from locally grown feedstocks, primarily palm oil.
“The B50 programme provides real economic benefits for the country. It is projected to save Indonesia around Rp170 trillion in foreign exchange throughout 2026,” Anggia said.
She said the savings would support national development while reducing the country’s exposure to volatility in global crude oil markets.
According to the ministry, the programme is also expected to generate up to 2.1 million jobs across the biodiesel supply chain, benefiting farmers, processors and related industries.
The ministry estimates the B50 mandate will reduce greenhouse gas emissions by approximately 44.46 million tonnes of carbon dioxide (CO₂) during 2026, contributing to Indonesia’s climate and decarbonisation goals.
Anggia said the government is closely monitoring the technical and operational implementation of the programme and is coordinating with automotive manufacturers, fuel suppliers and industrial stakeholders to ensure a smooth transition.
She added that the phased rollout of B50 is part of Indonesia’s long-term strategy to enhance energy security, expand the use of renewable fuels and maximise economic benefits through greater utilisation of domestic resources.
