Antara News·Indonesia·Friday, October 2, 2026 at 12:57 PM UTC

B50 biofuel program allows Indonesia to stop diesel imports: expert

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Putu Indah Savitri, Yashinta Difa

Jakarta (ANTARA) - Indonesia’s transition to a 50 percent palm oil-based biodiesel blend (B50) enabled the nation to halt all CN 48 diesel imports as of July 1, 2026, according to Padjadjaran University economics researcher and lecturer Yayan Satyakti.

Speaking on Thursday (October 1), Yayan highlighted the complete cessation of diesel imports as one of the most tangible economic achievements under the government's energy sovereignty initiative during the two-year administration of President Prabowo Subianto and Vice President Gibran Rakabuming Raka.

"Every liter of diesel that is no longer imported keeps money circulating within the domestic economy. Halting diesel imports through B50 is the clearest example of this," Yayan stated, noting that the initiative may save Indonesia approximately Rp170 trillion (US$9.55 billion) annually in foreign exchange.

Indonesia officially rolled out the mandatory B50 program in July 2026, becoming the first country in the world to implement a 50 percent biodiesel blend. The policy builds on the earlier B30, B35, and B40 programs rolled out over the past decade.

Data from the Energy and Mineral Resources (ESDM) Ministry projects that B50 will reduce greenhouse gas emissions by 44.46 million tons of CO2 equivalent in 2026—outperforming the environmental and financial gains achieved by B40 in 2025.

In addition to preserving foreign reserves, the ministry estimates the program will boost crude palm oil (CPO) value-added processing and support up to 2.1 million jobs nationwide.

The government targets full 100 percent B50 distribution across all gas stations by October 1, 2026.

Despite the economic benefits, Yayan warned that relying heavily on CPO feedstock carries environmental trade-offs, particularly the risk of accumulating a "carbon debt" driven by forest and peatland conversion for CPO supply.

To mitigate environmental risks while maintaining energy security, Yayan urged policymakers to review the mandate's long-term sustainability and expand alternative biofuels.

"Furthermore, we should promote E10 bioethanol, which cuts emissions by around 11 million tons annually," Yayan advised.

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