Prabowo Launches B50, Saves Foreign Exchange Up to IDR 170 Trillion

President Prabowo Subianto (Photo: press office)

JAKARTA - President Prabowo Subianto officially launched the Mandatory B50 Biodiesel Program at the KM 57 Rest Area, Karawang Regency, West Java.

The B50 program requires the mixing of biodiesel by 50 percent into diesel fuel. This policy is part of the Government's strategic agenda to reduce dependence on imported fuels, strengthen the added value of national natural resources, and maintain Indonesia's economic and energy resilience.

"Today, Kams 9 July 2026 with the grace of God Almighty, I Prabowo Subianto, President of the Republic of Indonesia, proudly inaugurate the mandatory biodiesel B50 program," said Prabowo, Thursday, July 9.

Prabowo said that the launch of B50 is not only a technological achievement but also a proof that Indonesia is able to utilize natural wealth for the benefit of the people.

"This is an important milestone towards energy independence," he explained.

The implementation of B50 is expected to provide significant economic and environmental impacts. In 2025, the B40 program saved foreign exchange of IDR 133.3 trillion, and through the Mandatory B50 in 2026 it is estimated to increase to around IDR 170 trillion.

In addition, B50 is expected to increase the value added of CPO from Rp20.92 trillion to around Rp23.49 trillion, absorb around 2.1 million workers, and reduce greenhouse gas emissions by around 44.46 million tons of CO₂ by 2026.

For information, the Mandatory Biodiesel B50 Program is contained in the Ministry of Energy and Mineral Resources Decree Number 4 of 2025 concerning the Operation and Utilization of Vegetable Fuel and the Ministry of Energy and Mineral Resources Decree Number 257.K/EK.01/MEM.E/2026 of 2026 concerning the obligation to mix biodiesel by 50 percent in solar oil.

The policy requires a 50 percent blending of biodiesel for all types of fuels in the form of solar oil. In its implementation, the vegetable fuel business, the oil fuel business, and the distributor business must implement standards and quality according to the specifications that have been established.

Fuel business entities that do not carry out the mixing obligation, or BBN business entities that do not distribute biodiesel according to the implementation target of 50 percent, may be subject to administrative sanctions in the form of written reprimands, temporary suspension of activities, and/or revocation of business licenses in accordance with the provisions of laws and regulations.

To support the implementation transition, the fuel business entity is given a transition period until September 30, 2026 to spend biodiesel stocks with a B40 mixing specification. The Minister of Energy and Mineral Resources will also evaluate the implementation of B50 every three months.