Deputy Minister of Energy and Mineral Resources (ESDM), Yuliot Tanjung, stated that the mandatory biodiesel policy has saved the country a total of US$17.19 billion, equivalent to IDR 271.78 trillion, over the course of 2024 and 2025. He emphasized that this achievement serves as strong evidence of the program’s significant economic impact, including in job creation.

The biodiesel mandate was introduced as a government initiative to meet the country’s fuel needs by blending biodiesel into diesel fuel. By 2025, Indonesia had already implemented the B40 mandate, with plans to increase the blend to B50 the following year.

“This biodiesel mandate is a government program designed to meet domestic fuel demand by mixing biodiesel into diesel. As of 2025, we have implemented B40, and next year we plan to roll out B50,” Yuliot said in an official statement quoted on Sunday (June 29, 2025).

He explained that using Crude Palm Oil (CPO) as the main feedstock for biodiesel is intended to enhance national energy security and reduce reliance on fuel imports. This strategy aligns with President Prabowo Subianto’s vision of achieving energy self-sufficiency.

In addition to saving foreign exchange, Yuliot noted that the mandatory biodiesel policy also stimulates domestic industrial growth and generates employment opportunities. In 2024, the B35 program provided jobs for approximately 12,000 workers in off-farm sectors and 1.64 million people in on-farm sectors.

With the launch of the B40 program in 2025, employment figures increased to around 14,000 in the off-farm sector and 1.95 million in on-farm operations. Yuliot highlighted that since the program’s inception in 2015 with B20, it has steadily progressed—reaching B30 in 2020 and peaking with B40 in January 2025, marking the highest implementation level globally.

He attributed this success to strong cooperation and synergy among various stakeholders. Moving forward, the government plans to increase the biodiesel blend in diesel beyond 40% to reduce greenhouse gas emissions and further strengthen national energy resilience.

B50 Production Ready for 2026

In a separate statement, Yuliot confirmed that Indonesia is ready to begin producing B50 starting in 2026. He noted that the available supply of Fatty Acid Methyl Ester (FAME)—a biofuel produced through the transesterification of palm oil with methanol—is sufficient to support B50 production.

“In terms of FAME availability, we are ready to move forward with B50 next year. Hopefully, it will be officially launched in early [2026],” Yuliot said at the Ministry of Energy and Mineral Resources office on Friday (May 16, 2025).

He said this optimism is backed by the successful evaluation of the B40 program, which has been implemented smoothly since early 2025, both for public service obligation (PSO) and non-PSO sectors.

While previous projections indicated that implementing B50 would require an additional 2.3 million hectares of palm oil plantations, Yuliot now believes such expansion is unnecessary. Based on coordination with the Ministry of Agriculture, the current supply of CPO is sufficient to support B50 production.

He further stated that the ongoing replanting (rejuvenation) program for oil palm has contributed to securing the supply, reducing the need for significant land expansion. “With the ongoing replanting program, CPO supply is adequate. So, maybe the need for additional land won’t be too large,” Yuliot concluded.