JAKARTA – The government has started the implementation of mandatory program of biodiesel 40 percent (B40) since early this year. The B40 program is lauded by Malaysia because of its contribution to the efforts of reducing global carbon emissions.
“Malaysia has also appreciated our B40 mandatory program as it contributes to efforts of reducing global carbon emissions,” Economic Coordinating Minister Airlangga Hartarto said recently in Jakarta.
Airlangga said the B40 program is in line with the vision of President Prabowo Subianto, which is designed in what is called Asta Cita. “It’s aimed to realize national energy and food self-sufficiency and further down-streaming of palm oil industries,” he said.
According to Airlangga, the B40 program will absorb crude palm oil (CPO) as raw material for blending of the biodiesel. But he ensured that the supply of CPO will be enough for the need of B40 production.
Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia said that besides realizing the food and energy resilience as envisioned by President Prabowo’s agenda of Asta Cita, the B40 program is also aimed at helping realize net zero emission in Indonesia in 2060. “If it is well implemented, we will upgrade it to B50 program in 2026. When we manage to implement it then, Insya Allah (God’s willing), we’ll no longer need to import diesel fuel,” said Bahlil.
The KESDM’s Director General of Renewable Energy and Energy Conservation , Eniya Listiani Dewi said that the implementation of B40 mandatory program has reduced the import of diesel fuel and as a result Indonesia can save its foreign exchange. “With the B40 program we can save up to Rp147.5 trillion in foreign exchange, while with B35 program we saved up to Rp122.98 trillion,” she said.
The mandatory B40 program has also contributed significantly in various aspects of economy, social and environment, including added value of CPO into biodiesel at Rp20.9 trillion, employment of more than 14,000 people (off-farm) and 1.95 million people (on-farm), reduction of greenhouse gas emission at 41.46 million tons of CO2e per year.
In 2025, the government allocated B40 production at 15.6 million kilolitre (kl) of biodiesel, consisting of 7.55 million kl for Public Service Obligation (PSO), and 8.07 million kl for non-PSO.
The implementation of B40 program is stipulated in the ESDM Ministry’s Decree No 341.K/EK.01/MEM.E/2024 on the use of biodiesel as a mixture of CPO and fossil diesel fuel which is 40% funded by the Oil Palm Plantation Fund Management Board (BPDPKS).
Distribution of the biodiesel is supported by 24 biodiesel producing companies, two state-owned companies for distribution of B40 for PSO and non-PSO, and 26 private companies for distribution of B40 for non-PSO.
KESDM’s Bioenergy Director Edi Wibowo said the need of CPO will continue rising in the future for production of the biodiesel mandatory program. For B40 program this year the need for CPO is projected to reach 15.6 million tons.
“Every upgrading of the biodiesel program is certainly based on assessments. The assessments are based on road tests, machine tests, etc. For preparations of B50, we’ve conducted a series of tests. We’ll ensure that B50 is ready for implementation early next year,” Edi said recently when addressing the Journalist Workshop on Downstream Palm Oil Industry in Bogor.
According to Edi, the B40 program has been fully implemented since 01 March 2025. “Currently, the biodiesel application has been running well, especially in terms of supply and distribution. Concerning quality, it’s been now rare to hear the technical issue of machine breaking down quickly due to biodiesel use. Such issue only arose during the early stages of biodiesel implementation. But now there has been no such issue,” he said.
Looking forward, Edi Wibowo said the government is still conducting further assessments for the implementation of B50 in 2026. “Our assessments include the local availability of CPO supply. Currently, the B40 program absorbs around 28% of domestic CPO supply,” he said.
The Indonesian Biofuel Producers Association’s (APROBI) Sustainability Division Head Rapolo Hutabarat said business players have been continually supporting the government’s mandatory biodiesel program. “Since 2005 the installed production capacity of biodiesel has been continually rising. In 2024 it reached more than 20 million kilolitres of biodiesel,” he said.
Rapolo said that besides the biodiesel, the government has been also pursuing the implementation of other renewable energy sources, such as bioethanol and bioavtur that should be further pushed by the government in the future.
“There are a number of companies producing bioethanol under APROBI. But the bioethanol program is not yet implemented as expected in government regulations. For example, in East Java there have been blending. We’re pushing for better implementation of bioethanol program with the use of palm oil or other vegetable oils,” he said.
He said that bioavtur or sustainable aviation fuel (SAF) as eco-friendly aircraft fuel solution is promising as Europe will oblige all aircrafts to use bioavtur in the near future.
“In relation to our energy resilience, we need to push up the bioavtur production by using palm oil. In 2026 or 2027 Europe will require all aircrafts landing on their airports to use bioavtur,” he said. (*)
Sawitkita.id. https://sawitkita.id/tekan-emisi-global-program-b40-dipuji-malaysia/. Tekan Emisi Global, Program B40 Dipuji Malaysia.
