JAKARTA - The implementation of the B50 Mandatory Program is a strategic step for the government to reduce Indonesia's dependence on oil fuel imports (BBM) as well as realize energy self-sufficiency in the country.
Professor of the Bandung Institute of Technology (ITB), Tri Yuswidjajanto Zaenuri, explained that the mandatory program of a mixture of solar and palm oil-based biodiesel 50% or the B50 Mandatory Program is an effort by the government to optimize the potential of domestic natural resources, especially crude palm oil (CPO) as a renewable energy source.
Indonesia has an advantage because it is one of the largest CPO producers in the world with a national production of around 53 million tons per year.
This potential is an important capital in accelerating the development of biofuel (BBN) which will help Indonesia realize energy self-sufficiency.
Tri Yuswidjajanto said that energy self-sufficiency is a strategic need because Indonesia is still dependent on imported fuels to meet national energy needs.
This dependence not only burdens the country's foreign exchange, but also increases vulnerability to external shocks such as fluctuations in the rupiah exchange rate, volatility in world oil prices, and the risk of embargoes or sabotage against energy supply chains.
"So, the development of domestic resources such as biofuels needs to continue to be pursued so that we can be energy self-sufficient. The B50 program is one of the efforts to realize this," he said in Jakarta, Saturday (4/7/2026).
Tri Yuswidjajanto believes that the implementation of the B50 Mandatory Program will have a positive economic impact such as reducing solar imports, saving the country's foreign exchange, and improving the trade balance of the oil and gas sector.
Based on data from the Ministry of Energy and Mineral Resources, the implementation of the biodiesel program during the period 2015-2025 has resulted in foreign exchange savings of IDR 722.9 trillion, creating added value of IDR 114.7 trillion through the processing of CPO into biodiesel, supporting the absorption of up to 10.9 million people in the palm oil sector, and contributing to the reduction of greenhouse gas emissions by 228.41 million tons of CO₂.
"The B50 program will increase the income of oil palm farmers and encourage regional economic growth. Palm oil producing areas such as Sumatra and Kalimantan benefit from economic activities in the plantation sector and the biodiesel industry," he explained.
He reminded that the government needs to anticipate an increase in domestic demand for the biodiesel industry so as not to disrupt the supply for export needs and the domestic food industry because CPO is the main raw material for cooking oil.
To answer this challenge, the Plantation Fund Management Agency (BPDP) encourages the strengthening of the upstream sector to increase the productivity, sustainability, and competitiveness of the national palm oil industry. These programs include the People's Palm Oil Revitalization (PSR), human resource development, research and development support (research), and the provision of plantation facilities and infrastructure.
"If more CPO is used domestically, the export volume will decrease so that the export value of palm oil can also decrease. In addition, CPO is used for cooking oil," he said.
Meanwhile, the Chairman of the Indonesian Palm Oil Entrepreneurs Association (GAPKI) Eddy Martono ensured that his party fully supports the implementation of the B50 Mandatory Program because it is very strategic in reducing solar imports and saving the country's foreign exchange.
He ensured that the national CPO supply was safe to meet the B50 requirement until the end of 2026 which reached 1.74 million tons.
Eddy Martono added that GAPKI is committed to prioritizing domestic needs for the B50 Mandatory Program compared to meeting export demand abroad.
"We will definitely prioritize domestic needs first," he concluded.
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