Indonesia to Launch B50 Biodiesel in July to Boost Energy Independence

RRI.CO.ID, Jakarta - The government is preparing to launch B50 biodiesel fuel on July 1 as part of efforts to increase the use of domestically sourced energy and reduce dependence on imported diesel.

The B50 policy, which raises the biodiesel blend from 40 percent to 50 percent, is considered a new milestone in Indonesia’s drive for energy independence. In addition to reducing fossil fuel imports, the program is projected to save the country hundreds of trillions of rupiah in foreign exchange annually.

Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, said the implementation of B50 has the potential to reduce or even eliminate imports of C48 diesel, which is still needed to meet national energy demand.

“Insya Allah (God willing), we are very optimistic that the implementation of B50 will take place on July 1. This will reduce or even eliminate diesel imports, especially C48,” Minister Bahlil said in Jakarta on Thursday, June 18, 2026, as quoted by Antara.

Minister Bahlil emphasized that technical readiness for B50 has undergone various testing stages with positive results. Trials were conducted on heavy equipment, ships, trains, mining vehicles, excavators, and agricultural machinery.

Ministry spokesperson Dwi Anggia stated that the B50 policy is estimated to save up to IDR 157.28 trillion in foreign exchange this year, an increase of about 17.9 percent compared to last year’s biodiesel program, which saved IDR 133.3 trillion.

Beyond reducing imports, the B50 program is expected to generate IDR 24.68 trillion in added value for crude palm oil (CPO), employ 2.21 million workers, and cut greenhouse gas emissions by 46.72 million tons.

Prof. Iman Kartolaksono Reksowardojo, an expert on internal combustion engines and renewable energy from the Bandung Institute of Technology (ITB), said increasing biodiesel use is a strategic step because the raw material is sourced domestically.

“The most tangible benefit the public can experience is a more secure energy supply. We won’t be dependent on imports or the use of dollars because the raw materials are available in Indonesia,” Iman said on Friday, June 19, 2026.

He added that the development of B50 provides greater opportunities for Indonesia to tap its abundant bioenergy potential while reducing exposure to fluctuations in the global energy market.

Besides energy security, biodiesel is also considered to have environmental benefits. The oxygen content in biodiesel facilitates more complete combustion, potentially reducing emissions of carbon monoxide, hydrocarbons, and smoke.

Iman noted that Indonesia currently has one of the highest biodiesel blending rates in the world, supported by abundant biofuel resources from the plantation sector.

Although B50 implementation will begin in July, the government continues technical tests in the railway, power generation, agricultural, and mining sectors to ensure readiness across the board.

“Although the technical testing phase is still ongoing in some sectors, we ensure that this implementation will be carried out simultaneously,” said Anggia. ***