Ministry Of Energy And Mineral Resources: Implementation B50 As Planned In 2026

Deputy Minister of Energy and Mineral Resources Yuliot Tanjung. (Photo: Doc. Antara)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) said the implementation of 50 percent biodiesel (B50) would be carried out according to plan, namely in 2026.

Deputy Minister of Energy and Mineral Resources Yuliot Tanjung said that his party was still conducting an ongoing B40 evaluation.

"We are currently evaluating this, and we are also planning to implement B50 next year, in 2026," said Yuliot in Bojonegoro, East Java, quoted by Antara, Friday, June 27.

He said that currently his party is still reviewing the possibility of accelerating the implementation of B50.

According to him, this can only be done after considering the readiness of the supply 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.

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, Friday (30/5).

B50 is a fuel consisting of a mixture of 50 percent biodiesel and 50 percent 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.