JAKARTA – The government has stated that there is no change on the implementation of the mandatory program of biodiesel 50 percent (B50), which is an upgrading of the current B40 mandatory program, and it will stick to the target of starting its implementation early in 2026.
Deputy Minister of Energy and Mineral Resources (ESDM), Yuliot Tanjung said that the success of the current B40 program implementation is the basis for upgrading it to B50 program early next year. He said they had conducted an evaluation of the B40 program implementation during the last few months and it turned out that the distribution of B40 under Public Service Obligation (PSO) and non-PSO has been proceeding well as expected.
“Now, we’re preparing for its upgrading to B50 program next year (2026). Hopefully, early next year it can be started,” Yuliot said at the ESDM office building in Jakarta on Friday (16/05).
According to Yuliot, the B50 program is also supported with the availability of FAME (Fatty Acid Methyl Ester from crude palm oil –CPO) , which is suuplied through a number of biodiesel producing companies.
“We’re also evaluating other domestic supporting companies. In terms of availability of FAME we’re almost ready for implementation of B50 program next year,” he said.
Previously, Energy and Mineral Resources Minister Bahlil Lahadalia had also stated that the government will upgrade the current B40 to B50 next year. “Our acceleration of B50 is aimed at, among others, reducing imports of oil fuels. It is also in line with the target of raising oil-gas lifting and reaching energy self-sufficiency,” the minister said.
In supporting the implementation of B50 mandatory program, the government has also decided to develop methanol plant at the value of US$1.0 – US$1.2 billion in Bojonegoro, East Java province. The methanol is an important ingredient for the process of transesterification of the FAME production, which is the raw material for biodiesel mixture with fossil diesel fuel.
NO Expansion
Yuliot said that for the implementation of B50 program there will be no need for the expansion of oil palm plantations to meet the need of CPO in the near future. “There is no need for expansion of palm plantations for the B50. We’ve coordinated with the agriculture ministry to ensure that the supply of CPO will still be enough for B50 implementation,” he said.
But he said that if the government wants to upgrade it later to B60, then there is a possibility of expanding the existing palm plantations to meet the increase of demand for CPO supply. “But considering the progress of replanting for smallholders’ plantations, such possibility of expansion is projected to be not significant,” he said.
Energy Transition
Commenting on the implementation of B50 program in 2026, the house of representatives’ (DPR) Commission XII Member Rusli Habibie said it will further realize Indonesia’s commitment in pushing the energy transition toward low carbon energy sources to support sustainable development based on green principles.
“The implementation of B50 is not just a matter of renewable energy. It is also a matter of keeping our energy resilience, increasing the added values of palm oil, and increasing the public welfare through downstreaming of palm oil industry,” Rusli said in Jakarta on Wednesday (21/05/2025).
But Rusli reminded all stakeholders on the importance of maintaining a balance between ensuring the supply of palm oil for foods and its supply for energy sector.
“B50 program is very strategic, but its implementation should not disrupt the supply of palm oil for foods. Keeping such a balance should become the focus of attention of all stakeholders,” the legislator from Gorontalo electoral district said. (*)
