The Government Expands Energy Transition Thru Implementation of B50

  • 22 Jul 2026 10:36 WIB
  •  Voice of Indonesia

RRI.CO.ID, Jakarta - The government keeps on strengthening its commitment to the energy transition thru the implementation of B50 biodiesel, which is diesel fuel mixed with 50 percent palm oil-based biodiesel. The policy is a strategic step to reduce dependence on fossil fuels, curb carbon emissions, and simultaneously increase national energy independence.

The Spokesperson for the Ministry of Energy and Mineral Resources (ESDM), Dwi Anggia, said that Indonesia is the first country in the world to implement the B50 mandate. According to her, the policy is part of the government's strategy to provide sustainable, affordable, and environmentally friendly energy amid global geopolitical dynamics.

"Energy independence is the main point. Indonesia is the first country in the world to implement mandatory B50. This is a strategic step to reduce dependence on fossil fuels, especially diesel imports, while also strengthening the transition toward clean and sustainable energy," Dwi Anggia said at a press conference in Jakarta, Tuesday, July 21, 2026.

She further explained that the implementation of B50 is a continuation of the biodiesel program that started in 2008 with B2.5 and has continued to increase to B10, B20, B30, B35, B40, and now has reached B50. Before being implemented nationally, the government conducted various cross-sector technical tests, ranging from the automotive industry, agricultural machinery, mining, railroads, maritime transport, to power generation.

In addition to technical benefits, the implementation of B50 is also projected to have a significant economic impact. The government estimates that foreign exchange savings in 2026 will reach Rp170 trillion, an increase compared to Rp133 trillion the previous year. This program is also expected to increase the added value of crude palm oil (CPO) and encourage job absorption in the related sectors.

"Last year's foreign exchange savings reached Rp133 trillion. This year, we project that by the end of the year, the potential foreign exchange savings could reach Rp170 trillion. Additionally, the reduction in CO2 emissions is projected to increase from 39.66 million tons last year to 44.46 million tons this year," he conveyed.

The government assesses that the implementation of B50 fosters not only national energy resilience, but also supports efforts to achieve emission reduction targets. Even, it provides economic benefits thru foreign exchange savings, increased added value of CPO, and job absorption.

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