Indonesia Allocates 3.5 Million Tons of CPO for B50 Implementation

RRI.CO.ID, Makassar - The Indonesian government is accelerating the transition to palm oil-based energy to reduce reliance on fossil fuel imports, with mandatory implementation of Biodiesel 50 (B50) scheduled to begin on July 1, 2026.

Agriculture Minister Andi Amran Sulaiman said around 3.5 million tons of crude palm oil (CPO) have been allocated to support the B50 policy. The measure is intended to strengthen national energy security while ensuring domestic supply stability.

“We’re converting 5.3 million tons of our CPO into biofuel. That’s the President’s order,” Minister Amran said in Makassar on Monday, April 6, 2026, as quoted by Antara.

He explained that Indonesia controls about 60 percent of the global CPO market, giving the country significant capacity to balance export needs with domestic use. National production has risen from 26 million tons to 32 million tons, allowing part of the supply to be redirected without disrupting exports.

According to Minister Amran, the six-million-ton increase in production was driven by global prices that encouraged farmers to improve productivity. This growth enables Indonesia to meet biofuel demand while sustaining foreign trade performance.

“The B50 target will be achieved this year. We are collaborating with Energy and Mineral Resources Minister Bahlil Lahadalia and all stakeholders,” he said.

Minister Amran emphasized that the policy has a dual impact: strengthening energy security and improving farmers’ welfare. Processing CPO into biofuel also stimulates economic activity in palm oil-producing regions.

Coordinating Minister for Economic Affairs Airlangga Hartarto highlighted that the B50 program aims to improve national energy efficiency. It is projected to save up to IDR 48 trillion (approx. USD 2.81 billion) in subsidies and reduce fossil fuel consumption by about 4 million kiloliters annually.

“This will take effect on July 1, 2026,” Airlangga said, adding that readiness is supported by state-owned oil and gas company PT Pertamina’s preparedness and cross-ministerial coordination. ***