JAKARTA - Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot Tanjung ensured that the implementation of B50 vegetable fuel (BBN) will continue in 2025.
Yuliot said, currently the Ministry of Energy and Mineral Resources is evaluating the implementation of B40 this year and is successfully running well. For this reason, he admits that he is optimistic that the implementation of B50 can also be carried out at the beginning of next year.
"For B50, we are evaluating the implementation of B40 this year, and we also hope that the implementation of next year B50 can be carried out soon," said Yuliot to the media crew at the Ministry of Energy and Mineral Resources Building, Friday, August 8.
Previously, Yuliot said that B50 could only be done after considering the readiness of crude palm oil (CPO) and the Nabati Fuel Business Entity (BBN).
Furthermore, Yuliot said that the biggest challenge of accelerating the implementation of B50 was the supply of biofuel, especially Fatty Acid Methyl Ester (FAME).
"So this BUBBN capacity is also limited. So yes, we are also trying to increase the production of the FAME. So it must be inline between the fame and the B50 program, if possible it will be accelerated, we will accelerate it for the implementation of B50," he added.
On a separate occasion, Agriculture Minister Amran Sulaiman said the price of crude palm oil (CPO) in the world market will increase when Indonesia implements B50.
"We exported 26 million tons last year (CPO). If we withdraw 5 million tons, it means only 21 million tons. What price goes up, what goes down? Yes, it goes up," said Amran in Jakarta.
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For information, B50 is a fuel consisting of a mixture of 50 percent of biodiesel and 50 percent of conventional diesel. To produce B50, Amran said the government needed 5.3 million tons of CPO.
In order to meet these needs, the government plans to divert CPO exports by 5.3 million tons for the B50 program, from 26 million tons of CPO exported by Indonesia based on 2024 data.
Considering that Indonesia's CPO controls around 65.94 percent of the world's CPO, Amran believes that the withdrawal of 5.3 million tons of Indonesian CPO will cause an increase in CPO prices in the world market.
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