Support Mandatory B50, Energy Expert Says Environmentally Friendly

JAKARTA - The mandatory policy of B50 biodiesel is considered a strategic step to strengthen national energy resilience while reducing Indonesia's dependence on solar imports.

The program of mixing 50 percent of palm oil-based biofuel also has the potential to provide benefits to the country's foreign exchange and emission reduction.

The economist of the State University of Surabaya (Unesa), Hendry Cahyono, said the use of B50 can reduce the import of energy. The reduced need for solar imports also has the potential to have a positive impact on the trade balance and the rupiah exchange rate.

"If what is conveyed is like that, it will indeed reduce the import figure. One of the impacts later can also be on the appreciation of the rupiah exchange rate," said Hendry when contacted, Thursday, June 18.

The government estimates that the implementation of B50 can make Indonesia stop importing diesel and save foreign exchange up to IDR 157 trillion. According to Hendry, this target can be achieved as long as the government has carefully calculated the raw material needs, biodiesel industry capacity, and financing scheme.

He assessed that the mandatory B50 can also be one of the important projects in realizing energy independence. Although energy self-sufficiency does not only depend on biodiesel, increasing the use of fuels based on domestic resources can reduce dependence on supplies from abroad.

"If B50 is used later and the industrial sector also uses B50, it can be one of the pilot projects for energy security," he said.

Hendry added that the implementation of B50 can also encourage the growth of the national biodiesel industry. Increased demand for vegetable fuels can open up new investments, increase the utilization of biodiesel plants, and create a multiplier effect on the plantation sector and the palm oil processing industry.

"Indonesia also has the opportunity to be a pioneer in the application of biodiesel with high blends. A number of countries still apply lower biodiesel levels, such as Malaysia which is in the range of B10 to B20, Thailand around B20, as well as a number of European countries that use blends of around 7 to 10 percent," he said.

The environmental aspect also needs to be maintained from the upstream side. Hendry reminded that the increased palm oil needs should be met through productivity and technology improvements, not by opening plantations massively which risk causing deforestation and carbon debt.

Meanwhile, energy expert from the Institute of Technology of Sumatra (ITERA), Rishal Asri, assessed that the government's move to raise the mandatory from B40 to B50 was right from an economic perspective. This policy can reduce the burden of imports and subsidies, although its implementation still requires technical supervision.

"The actions taken by the government are correct. Reducing subsidies by mixing raw materials up to B50 is economically correct," said Rishal.

In terms of the environment, increasing the content of vegetable fuels can reduce combustion emissions. The reduced content of fossil diesel in fuels makes the levels of carbon monoxide and hydrocarbons produced by vehicles also lower.

"In terms of research results, emissions are automatically reduced because the content of diesel is decreasing. The levels of carbon monoxide and hydrocarbons are reduced," said Rishal.

The government officially stipulates the implementation of mandatory biodiesel B50 nationwide starting July 1, 2026. This policy is a strategic step to strengthen national energy independence and resilience while stopping the import of solar fuel. The long journey of this energy transition includes several major stages:

- Early Stage B20: Starting from 2016, the government gradually requires the mixing of 20% biodiesel in solar. - Increase to B30: Mandatory increased to 30% in early 2020 after undergoing a series of successful trials. - Increase to B35: Implementation of 35% mixture will be implemented in full by February 2023. - B50 trial: Intensive field trials are being carried out by the Ministry of Energy and Mineral Resources (ESDM) under the command of Minister Bahlil and Pertamina until early 2026 to ensure the readiness of engine performance and distribution infrastructure. - Full Implementation of B50: Based on the positive evaluation results of the trial, the government ensures that B50 is ready to be implemented simultaneously as of July 1, 2026.

Based on data from the Ministry of Energy and Mineral Resources, the implementation of the B50 program is projected to save the country's foreign exchange up to IDR 157.28 trillion. In addition to the economic aspect, the policy is also expected to increase national employment with a target of absorbing more than 2.2 million workers.

In terms of the environment, the use of B50 is targeted to be able to reduce greenhouse gas emissions by 46.72 million tons of CO2 in 2026. The government targets all the trial series in the automotive sector to be completed by June 2026, while other strategic sectors such as heavy equipment and railways will be completed gradually until the end of the year. With the results of the interim test showing reliable and safe performance, B50 is ready to strengthen national energy independence.