JAKARTA – Indonesia’s President Prabowo Subianto said on Monday (30/03/2026) during an official visit to Japan that the South-east Asian country will go ahead in 2026 with its B50 palm oil-based biodiesel program.
“We are going in a big way to biofuel,” President Prabowo said at a business forum ahead of his meeting with Japanese Prime Minister Sanae Takaichi.
“We will produce this year diesel oil from palm oil, and now we are increasing from 40 percent to 50 percent.”
In January, the authorities scrapped a plan to launch B50 – a blend of 50 percent palm oil-based biodiesel and 50 percent conventional diesel – in 2026 due to technical and funding concerns, instead sticking with the B40 blend.
But there have been talks to revive the plan in the light of the energy supply disruptions brought about by the USA-Israeli war with Iran.
Ethanol for bio-gasoline
Besides biodiesel for substitution to diesel fuel, Prabowo has also emphasized the government’s plan to develop bioethanol for blending with conventional gasoline.
The government will optimize domestic natural resources, such as cassava, sugarcane, and corn as the main raw materials.
President Prabowo said Indonesia turned to the bioenergy as a solution to the potential energy crisis caused by oil supply disruption as a result of the geopolitical tension in the Middle East between USA-Israel and Iran.
“This becomes more urgent for us because of the geopolitical condition in the Middle East that has created uncertainty for our energy security. Therefore, we are determined to maximize what we have and rely more on renewable energy,” said Prabowo.
In addition to biofuels, Prabowo also emphasized the target of accelerating the use of solar power plant (PLTS). The government has set an ambitious target of achieving 100 Giga Watts (GW) of solar energy capacity within the next three years.
Agricultural down-streaming
Before departing for Japan at Emperor Naruhito’s invitation, Prabowo appointed the Ministry of Agriculture to accelerate the down-streaming of agricultural products to support the bioenergy program.
“During our meeting last week before the President left for Japan and South Korea, he stated that we need to accelerate our down-streaming program. First, for the agricultural sector, biofuel down-streaming is necessary. Amidst the geopolitical tension in the Middle East, we need swift action,” Agriculture Minister Andi Amran Sulaiman said in an official statement.
He said that the government decided to implement the B50 program this year after ensuring that it will not affect the consumption for foods sector. “Now, the government wants to focus on energy independence through biofuel and bioethanol,” the minister said.
“Supply for food is secured. So, thank God, during the holy month of Ramadan, rice prices are not the main contributor to inflation. Second, the President’s promise to stop importing diesel fuel and replace it with the palm oil-based B50. That’s 5.3 million tons,” he said.
In addition to biofuel, the Ministry of Agriculture is also promoting the development of bioethanol as a new, agriculture-based energy source through the E20 program. “Third, our dream is E20. What is E20? Ethanol and gasoline blend. Where does it come from? Corn, cassava, and sugar cane. All of them can grow in Indonesia,” he said. (*)
Cnbcindonesia.com. President Prabowo Confirms RI To Implement B50 This Year. https://www.cnbcindonesia.com/news/20260331090147-4-722667/prabowo-sebut-akan-berlakukan-biodiesel-sawit-50-b50-tahun-ini. 31 March 2026
