Energy Transition Seen as Key to Reducing Trade Deficit, Cutting Oil Imports

RRI.CO.ID, Jakarta – Indonesia’s push to expand biodiesel use through the B50 program is expected to ease the country’s trade deficit by cutting reliance on imported oil, according to the Center of Reform on Economics (CORE) Indonesia.

CORE Executive Director Mohammad Faisal explained that a successful energy transition would increase the share of biofuel in the national energy mix, particularly palm oil–based crude palm oil (CPO), while reducing the proportion of fossil fuels such as diesel and gasoline.

“If B50 runs well, fuel consumption from imports will decline, and that means our oil import burden will also be reduced,” Faisal said in Jakarta on Monday, July 13, 2026, as quoted by Antara.

He noted that Indonesia remains a net importer of oil, so lowering imports would directly help narrow the deficit in the oil and gas trade balance. “If we can suppress oil imports, the deficit in our trade balance, especially in oil and gas, will be reduced. That in turn will push the overall trade balance toward a surplus,” he said.

Coordinating Minister for Economic Affairs Airlangga Hartarto previously stated that the B50 program could save Indonesia up to IDR 177 trillion in foreign exchange while cutting carbon emissions by 44 million tons of CO₂ equivalent. He added that the initiative eliminates dependence on imported diesel and positions Indonesia as the first country in the world to implement a B50 biodiesel program.

Minister Airlangga emphasized that the policy is part of the government’s broader strategy to strengthen energy security amid global uncertainty, reinforcing the foundations of the national economy at a time of mounting challenges. ***