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Indonesia expects B50 biodiesel programme to save 10.8 billion USD in 2026

Under the B50 programme, diesel fuel is blended with 50% biodiesel produced from domestically sourced palm oil, reducing the country's dependence on imported fossil fuels while strengthening national energy security.

Hanoi (VNA) – Indonesia expects to save around 170 trillion IDR (around 10.8 billion USD) in 2026 through the mandatory implementation of its B50 biodiesel programme, according to the Ministry of Energy and Mineral Resources (ESDM).

Under the B50 programme, diesel fuel is blended with 50% biodiesel produced from domestically sourced palm oil, reducing the country's dependence on imported fossil fuels while strengthening national energy security.

ESDM spokesperson Dwi Anggia said the programme marks a new phase in Indonesia's pursuit of energy sovereignty, with half of the diesel consumed nationwide now derived from crops grown and harvested by local farmers, Indonesia's Antara news agency reported.

According to Anggia, the savings generated by lower fuel imports will support national development and help shield the economy from fluctuations in global oil prices.

The ministry also estimates that the programme could create up to 2.1 million jobs across the biodiesel value chain, from feedstock production and processing to fuel distribution.

In addition to its economic impact, the B50 programme is expected to make a significant contribution to Indonesia's climate commitments. The ministry projects that expanding biodiesel use will reduce carbon dioxide (CO₂) emissions by around 44.46 million tonnes in 2026, supporting the country's efforts to curb greenhouse gas emissions and accelerate its transition to cleaner energy./.

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