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Informist, Wednesday, May 28, 2025

MUMBAI - The Indonesian government reaffirmed its commitment to implementing the B50 mandatory biodiesel programme by early 2026, by upgrading the current B40 programme, the Indonesian Palm Oil Association, or GAPKI, said in a press release Wednesday. The B50 programme refers to a biodiesel blending mandate in Indonesia, where 50% of diesel fuel is blended with biofuel, primarily palm oil-based biodiesel. It is similiar to B40 programme which was implemented in January.

Yuliot Tanjung, Indonesia's deputy minister of energy and mineral resources, said that an evaluation of the B40 programme's implementation over the last few months has been conducted and it turned out that the distribution of B40 under public service obligation and non-public service obligation has been proceeding well as expected.

According to Yuliot, the B50 programme is also supported with the availability of Fatty Acid Methyl Ester from crude palm oil or FAME, which is supplied through a number of biodiesel producing companies. Fatty acid methyl esters from crude palm oil are produced by transesterification, wherein triglycerides or fats in palm oil are reacted with methanol. This process transforms palm oil into biodiesel. Additionally, a methanol plant worth $1–$1.2 billion is planned in Bojonegoro, East Java, to bolster FAME production.

He clarified that B50 will not require expansion of oil palm plantations. The current supply is deemed adequate, though potential B60 implementation might demand slight plantation expansion. 

Bahlil Lahadalia, the country's energy and mineral resources minister, highlighted B50's role in cutting fuel imports, advancing energy independence and reaching self-sufficiency.

Meanwhile, member of Commission XII of the Indonesian House of Representatives Rusli Habibie praised the programme as a key step in Indonesia's energy transition toward low carbon energy sources to support sustainable development but cautioned on the need to balance palm oil use for energy and food. "B50 programme is very strategic, but its implementation should not disrupt the supply of palm oil for foods. Keeping such a balance should become the focus of attention of all stakeholders," he said.  End

Reported by Anjali Lavania

Edited by Tanima Banerjee

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