Director General Of EBTKE Calls Mandatory B40 Will Save Foreign Exchange Of IDR 147.5 Trillion

JAKARTA - Director General of New Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources (Kemen ESDM), Eniya Listiani Dewi, stated that the mandatory use of 40 percent biodiesel mixed fuel (B40) saves import costs of IDR 147.5 trillion.

Eniya said that the vegetable fuel mandatory program (BBN) based on palm oil can reduce imports of fuel oil (BBM), thus saving foreign exchange.

"Devisa savings for mandatory use of B40 amounted to Rp. 147.5 trillion," said Eniya quoting Antara.

Meanwhile, continued Eniya, for the implementation of B35, Indonesia can save foreign exchange of up to IDR 122.98 trillion. Thus, foreign exchange savings are around IDR 25 trillion by not importing diesel fuel.

Eniya said that in addition to providing economic benefits, the B40 biodiesel mandatory program has provided significant benefits in various social aspects, the environment including increasing the added value of crude palm oil (CPO) to biodiesel of IDR 20.9 trillion.

"In addition, the absorption of more than 14 thousand workers (off-farm) and 1.95 million people (on-farm), as well as a reduction in greenhouse gas emissions of 41.46 million tons of CO2e per year," he explained.

In 2025, the government set the allocation of B40 as much as 15.6 million kiloliters (kl) of biodiesel with details, 7.55 million kl for public service obstruction (PSO). Meanwhile, 8.07 million kl is allocated for non-PSO.

The implementation of the mandatory B40 program is contained in the Decree of the Minister of Energy and Mineral Resources No. 341.K/EK.01/MEM.E/2024 concerning the Utilization of Fuel Types of Biodiesel as a Mix of Diesel Oil Fuel Types in the Financing Context by the Palm Oil Plantation Fund Management Agency of 40 Percent.

The distribution of biodiesel will be supported by 24 BBN Business Entities (BU) that distribute biodiesel, 2 BU BBM which distributes B40 for PSO and non-PSO, as well as 26 BU BBM which specifically distributes B40 for non-PSO.

Previously, the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia officially stipulated that the mandatory use of 40 percent biodiesel (B40) mixed fuel will officially take effect from January 1, 2025.

Bahlil at a press conference in Jakarta, Friday, said that today the Ministry of Energy and Mineral Resources had held an internal meeting to discuss in detail related to biodiesel B40 affairs.

"We have decided from the Ministry of Energy and Mineral Resources regarding the increase from B35 to B40. And today we announce that it is valid as of January 1, 2025," said Bahlil.

This step, according to Bahlil, is in line with the Astacita agenda of the President of the Republic of Indonesia Prabowo Subianto regarding the resilience and self-sufficiency of energy, as well as the government's target of achieving net zero emissions by 2060. The government has even prepared a plan to further increase to B50 by 2026.

"If this goes well, at the direction of President Prabowo, we will encourage the implementation of B50 in 2026 and if we do this, then our import of diesel, God willing, will certainly no longer exist in 2026," said Bahlil.

"So this ( biodiesel mandatory) program is part of the President's order on energy security and reducing imports," Bahlil added.