Welcoming The Biodiesel B40 Program, Kadin Asks The Government To Give Incentives For Business Actors

B40 fuel is shown after the B40 vehicle road test in Jakarta. (Photo: Doc. ANTARA)

JAKARTA The Indonesian Chamber of Commerce and Industry (Kadin) supports the B40 biodiesel program that has been launched by the government.

Chairman of the Standing Committee for Strategic Plans and Institutions for the Indonesian Chamber of Commerce and Mineral Resources, M Maulana, asked the government to provide incentives for biodiesel producers so that they are interested in increasing production capacity as well as investing in more efficient processing technology.

This step is considered in line with the strategic program of the Indonesian Chamber of Commerce and Industry which focuses on developing the renewable energy industry.

One of the strategic programs carried by the Head of the Energy and Mineral Resources Division throughout 2025, namely Indonesia Hijau with the aim of creating energy resilience while at the same time avoiding dependence on fossil fuels.

"We are ready to become a strategic partner of the government to align this policy with the national ESDM development roadmap, including ensuring the sustainability of raw material supply and absorption of the domestic market," said Maulana, Tuesday, January 7.

Meanwhile, Deputy Chairperson of the Energy and Mineral Resources Division (ESDM) of the Indonesian Chamber of Commerce and Industry Aryo Djojohadikusumo said the B40 biodiesel program has the potential not only to reduce dependence on fuel imports but is also an important milestone in realizing national energy resilience and independence.

"The B40 biodiesel program is a strategic solution that is able to provide multiple effects (multiplier effects) in various domestic sectors, ranging from increasing absorption of agricultural products to reducing trade balance deficits through foreign exchange efficiency," continued Aryo.

According to Aryo, this program has great potential to create jobs in the upstream and downstream sectors.

The palm oil-based biodiesel industry can improve farmers' welfare and open up investment opportunities in the manufacturing sector.

The Ministry of Energy and Mineral Resources projects that the B40 biodiesel program will be able to absorb 1.95 million workers in the on-farm sector and more than 14,000 people in the off-farm sector.

Aryo emphasized that the success of the B40 program requires support from various parties, including the right incentives for consumers.

"The price of biodiesel-based fuel must be competitive in the market. Price subsidies or other incentive schemes need to be considered to encourage people's purchasing power," he explained.

In addition, he continued, it is very important to synergize between the government, business actors, and the community in supporting the success of the B40 program.

"With the right steps, this program is not only a short-term solution to overcome economic challenges, but also a strong foundation for Indonesia's energy independence," said Aryo.

For information, the implementation of the mandatory B40 program itself 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 Nabati Fuel Types of Biodiesel as a Mix of Diesel Oil Fuel in Financing Context by the Palm Oil Plantation Fund Management Agency of 40 percent.

Previously, Minister of Energy and Mineral Resources Bahlil Lahadalia emphasized that the implementation of B40 could save foreign exchange of up to IDR 147.5 trillion per year through reducing fossil fuel imports.

This is expected to strengthen foreign exchange reserves while supporting national economic growth.