(Makassar, 7th – Comprehensive News) The Indonesian government has announced it will prepare 3.5 million tons of crude palm oil (CPO) for the B50 biodiesel program to be implemented on July 1 this year, in an effort to strengthen national energy security.
Indonesia's Minister of Agriculture, Andi Amran Sulaiman, stated that this policy is being promoted according to presidential instructions to convert more palm oil into biofuel, aiming to achieve the goal of energy resilience. He pointed out that a total of about 5.3 million tons of palm oil nationwide will be converted into biofuel to support the B50 plan.
He said that the B50 policy will mainly rely on plant-based energy while ensuring sustainable supply for domestic demand. Currently, Indonesia controls about 60% of the world’s crude palm oil market, enabling the government to balance between export and domestic usage.
Data shows that Indonesia’s palm oil export volume has increased from 26 million to 32 million tons, of which 3.5 million tons are dedicated to the B50 program. Due to international price increases and farmers boosting productivity, the national output has increased by about 6 million tons, ensuring that allocation for biofuels will not impact exports.
Andi Amran Sulaiman mentioned that the government is working with Minister of Energy and Mineral Resources, Bahlil Lahadalia, to ensure the B50 target is achieved this year.
He said the policy is expected to strengthen energy security, increase oil palm farmers’ income, and boost economic activities in producing regions, while consolidating Indonesia’s vital status in the global palm oil market.
Earlier, Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, pointed out that the B50 policy is expected to save about 48 trillion Indonesian rupiahs in subsidies, and serves as a crucial measure towards energy independence and efficiency. The policy, in the form of 50% palm oil and 50% diesel blended fuel, will be officially implemented on July 1, 2026.
He said that the B50 policy will mainly rely on plant-based energy while ensuring sustainable supply for domestic demand. Currently, Indonesia controls about 60% of the world’s crude palm oil market, enabling the government to balance between export and domestic usage.
Data shows that Indonesia’s palm oil export volume has increased from 26 million to 32 million tons, of which 3.5 million tons are dedicated to the B50 program. Due to international price increases and farmers boosting productivity, the national output has increased by about 6 million tons, ensuring that allocation for biofuels will not impact exports.
Andi Amran Sulaiman mentioned that the government is working with Minister of Energy and Mineral Resources, Bahlil Lahadalia, to ensure the B50 target is achieved this year.
He said the policy is expected to strengthen energy security, increase oil palm farmers’ income, and boost economic activities in producing regions, while consolidating Indonesia’s vital status in the global palm oil market.
Earlier, Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, pointed out that the B50 policy is expected to save about 48 trillion Indonesian rupiahs in subsidies, and serves as a crucial measure towards energy independence and efficiency. The policy, in the form of 50% palm oil and 50% diesel blended fuel, will be officially implemented on July 1, 2026.