President Prabowo Subianto Launches First Mandatory B50 Biodiesel in World

July 10, 2026

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(Indonesia Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation) President Prabowo Subianto Thursday (07/09) officially launched B50 Biodiesel at the event adopting theme “Concrete Steps Toward National Energy Self-Reliance and Resilience,” at the KM 57 Rest Area in Karawang regency, West Java province.

Upon arrival, President Prabowo first toured a walk-in gallery showcasing technical explanations of the B50 Biodiesel product and immediately proceeded to the venue for the program launch that began with the singing of Indonesian national anthem, recitation of prayers, and a report presentation by Minister of Energy and Mineral Resources Bahlil Lahadalia.

In his report, Bahlil underscored that the B50 Biodiesel launch is a strategic step taken by the Government to realize energy sovereignty, as outlined in President Prabowo’s Asta Cita (eight missions). According to Bahlil, the implementation of the mandatory B50 Biodiesel helps Indonesia to end its reliance on diesel fuel imports,

“Today we are not only launching B50, but we are also taking a major step toward a more sovereign Indonesia in the energy sector, in line with the President’s Asta Cita,” the Minister said.

Bahlil noted that national diesel consumption has stood at around 38 to 40 million kiloliters per year, with diesel product imports ranging from 3 to 4 million kiloliters annually.

“With the implementation of B50, alhamdulillah we are no longer importing diesel products into our country, and this is the first,” he added.

In his remarks, President Prabowo said Indonesia has officially become the first country in the world to implement a mandatory B50 Biodiesel policy.

“This is not merely a technological achievement; it serves as a proof that Indonesia can manage its own natural wealth for the benefit of its people. This is a crucial milestone toward energy self-reliance,” the President said.

President Prabowo officially launched the Mandatory B50 Biodiesel Program, accompanied by Coordinating Minister for Economic Affairs Airlangga Hartarto, Minister of Energy and Mineral Resources Bahlil Lahadalia, Minister of Investment and Downstream Industry/Head of the Investment Coordinating Board Rosan Roeslani, and State-owned Oil and Gas Company PT Pertamina (Persero) President Director Simon Aloysius Mantiri.

“Bismillahirrahmanirrahim, this afternoon, Thursday, July 9, 2026, by the grace of Almighty God, I, Prabowo Subianto, President of the Republic of Indonesia, hereby officially launch B50 Biodiesel,” the President declared as he pressed the siren button to inaugurate the program.

The launch marks a new chapter in Indonesia’s journey toward energy self-sufficiency and affirms the country’s position as a pioneer in the energy transition, leveraging its natural resource potential to strengthen national energy resilience and sovereignty. (BPMI of Presidential Secretariat) (RAS/TM) READ MORE

Indonesia launches B50 biodiesel to curb fuel imports -- Increased domestic demand for palm oil likely to reduce exports, analysts say (Nikkei Asia)
Indonesia says B50 biodiesel plan to boost palm oil use, cut fuel imports (Reuters)
President says B50 biofuel and dams boost national self-reliance (Antara)
4 Highlights from Prabowo's Remarks at Indonesia's B50 Launch (Tempo English)
Indonesia can save Rp177 trillion from B50 biodiesel program: Minister (Antara)
ISEAI: Indonesia's B50 Program May Reduce Foreign Exchange Earnings (Tempo English)
Indonesia becomes first country in world to introduce biodiesel containing 50% palm oil (Kazinform)
Indonesia begins B50 biodiesel rollout at 29 fuel terminals (Antara)
Indonesia says all sectors ready for July B50 biodiesel rollout (Antara)
UGM professor: B50 biodiesel key to Indonesia’s energy, economy, environmental strength (Universitas Gadjah Mada/Biobased Diesel Daily)
Indonesia Reviews B50 Biodiesel Impact, Says BPDP Funds Remain Sufficient for Biodiesel and Smallholder Replanting (Palm Oil Magazine)
Indonesia eyes $10.8bn savings as B50 biodiesel expands (Trade Arabia News Service)
Pertamina Ships First 12,830 Kiloliters of B50 Biodiesel (Tempo English)
RBI links broad-based edible oil price rise to biofuel use, cites Indonesia's B50 mandate (Live Mint)
Indonesia’s B50 biodiesel push aims to cut imports and pollution (Muslim Network TV)

Excerpt from Reuters: The world's largest palm oil producer last week launched its B50 biodiesel programme, although industry participants are still awaiting revised biodiesel allocations from the government.

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He (Bahlil) said he had pushed for a B100 mandate, but ministers had advised him that a 50% palm oil blend was sufficient to eliminate imports. He added that authorities should continue ‌pursuing ⁠a 60% blend.
Bahlil said the government would begin research into a 60% mix.
Raising the blend to 50% is expected to reduce this year's import bill by 170 trillion rupiah ($9.41 billion), compared with savings of about 133 trillion rupiah in 2025, energy ⁠ministry data show.
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The ministry has yet to issue ⁠additional quotas for the B50 programme.
Businesses will have until the end of September to use up remaining B40 stocks.($1 = 18,070.0000 rupiah) READ MORE

Excerpt from Tempo English: The following were some of the key points raised by Prabowo during the launch of the B50 biodiesel program.

Wealthy Citizens Should Pay Higher Fuel Prices, Prabowo Says

During the event, Prabowo reiterated that fuel subsidies should continue to protect lower-income Indonesians, while wealthier citizens should pay market prices for non-subsidized fuel.

He said Indonesia had been praised internationally for maintaining affordable fuel prices for poorer households despite global economic challenges.

"I am surprised myself. World figures are discussing how Indonesia managed not to panic and not to raise fuel prices for the lower class. If it is for the rich, it is not a problem," Prabowo said.

The president then jokingly addressed several prominent business figures attending the event, including Adaro Energy President Director Garibaldi "Boy" Thohir, Indika Energy executive Arsjad Rasjid, and Danantara Indonesia CEO Rosan Roeslani.

"Boy, you have no problem paying higher prices. Arsjad, if you can afford a Lamborghini, you should be willing to pay more, right?" Prabowo said, drawing laughter from the audience.

Prabowo Reveals Discovery of Large Gold Reserves in Papua

Prabowo also disclosed that an Indonesian scientific expedition had recently discovered significant gold and mineral reserves in Papua's mountainous region.

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Prabowo Says Many Countries Envy Indonesia

In his speech, Prabowo also claimed that many countries were envious of Indonesia and sought to undermine its progress.

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Prabowo Rejects Accusations of Misleading the Public

Prabowo also denied accusations that his administration had misled the public, particularly regarding its claims of achieving food self-sufficiency.

He said many people had mocked or questioned the government's assertion that Indonesia had achieved food self-sufficiency within a year.

"Many people who consider themselves smart mock us, obstruct us, and accuse the government of lying to the people by saying we have not achieved food self-sufficiency," he said.

The president firmly rejected the accusation.

"It is sinful for a government to lie to its people. It is a betrayal for leaders to be unfaithful to their people, and it is treasonous for leaders not to place the interests of the nation above all else," Prabowo said.

The remarks came as Prabowo's administration continues to place food security and energy independence at the center of its economic agenda. READ MORE

Excerpt from Antara: Indonesia's B50 biodiesel program could save up to Rp177 trillion (about US$10.9 billion) in foreign exchange, eliminate diesel imports and reduce carbon emissions by 44 million metric tons annually, Coordinating Minister for Economic Affairs Airlangga Hartarto said. READ MORE

Excerpt from Antara: Subholding commercial and trading of Indonesia’s state energy firm PT Pertamina Patra Niaga confirmed that 29 of its 126 fuel terminals across the country are ready to distribute B50 biodiesel.

The announcement aligns with the official issuance of recent Minister of Energy and Mineral Resources Decree which mandates a 50 percent palm-oil-based biodiesel blend in diesel fuel nationwide, according to the company’s Vice President of Corporate Communication Kitty Andhora on Wednesday.

Under the decree, a transition period has been granted to energy companies that still hold existing stocks of B40 biodiesel.

Business entities carrying B40 inventories are permitted to distribute the fuel until September 30, 2026, provided the products meet established quality standards and technical specifications.

"We are continuing to monitor the distribution of B50 to ensure it runs smoothly, reaches distribution agencies and is available for public consumption," Kitty said.

She added that the number of operational distribution terminals for B50 biodiesel will continue to be gradually increased throughout the transition period.

The B50 rollout serves as a cornerstone of President Prabowo Subianto's broader economic sovereignty agenda, with the administration aiming for full energy self-sufficiency within the next three to four years.

Prabowo has emphasized that energy independence and security remain key priorities for Indonesia, aimed at shielding the domestic market from international supply disruptions—particularly amid ongoing geopolitical tensions in oil-producing regions and maritime trade routes such as the Strait of Hormuz.

The Ministry of Energy and Mineral Resources confirmed that all industrial sectors are fully aligned to implement the mandatory B50 policy simultaneously, following extensive multi-sector preparations ahead of the July 2026 launch.

Ministry spokesperson Dwi Anggia said compatibility testing for B50 has been successfully completed across a wide range of transport segments and machinery types.

The fuel has been approved for use in heavy machinery, locomotives, marine vessels, as well as specialized equipment in the mining and agricultural sectors.

Anggia further confirmed that the B50 mandate will take effect simultaneously across the archipelago. READ MORE

Excerpt from Universitas Gadjah Mada/Biobased Diesel Daily: Professor Karna Wijaya, a renewable energy researcher and faculty of mathematics and natural sciences lecturer at Universitas Gadjah Mada in Indonesia, said the country’s growing energy demand makes the development of B50 increasingly relevant.

In addition to strengthening the domestic energy supply, B50 has the potential to stimulate economic growth through agriculture, plantation, processing, catalyst manufacturing and renewable energy research sectors.

“However, its success depends not only on the percentage of biodiesel in the fuel blend but also on the availability of sustainable feedstocks, reliable production technologies, consistent quality standards, distribution infrastructure, financing and fuel compatibility with various types of diesel engines,” Wijaya said July 6.

According to Wijaya, biodiesel production in Indonesia currently relies primarily on crude palm oil (CPO) and its derivatives.

This is supported by the country’s abundant palm-oil production, well-established supply chains and relatively mature processing industry.

Nevertheless, dependence on a single feedstock should be anticipated by diversifying vegetable-oil sources to ensure a more resilient and sustainable biodiesel industry.

Several alternative feedstocks are attracting attention, including used cooking oil (UCO), tamanu oil (Calophyllum inophyllum), kemiri sunan (Reutealis trisperma) oil and other nonfood vegetable oils.

UCO, for example, has significant potential because it is from households and the food-service industry.

Its utilization not only reduces environmental pollution but also supports the circular economy by converting waste into value-added products.

“Meanwhile, plants such as tamanu and kemiri sunan produce nonfood oils that can be cultivated on marginal land without competing with food production,” he explained...

According to Wijaya, B50 development should not be viewed merely as increasing the proportion of biodiesel in diesel fuel, but as part of building a stronger national renewable energy ecosystem.

“The development of B50 must be supported by sustainable feedstock availability, more efficient processing technologies, and guaranteed fuel quality so that it can be optimally used across the transportation and industrial sectors,” he said.

In addition to strengthening energy security, B50 development also offers significant economic and environmental benefits.

The program can increase the value of domestic commodities, create new business opportunities, strengthen Indonesia’s biodiesel industry and encourage greater participation by farmers and businesses in the renewable energy supply chain.

Environmentally, biodiesel has the potential to reduce net greenhouse-gas emissions compared with fossil fuels, particularly when produced from sustainable feedstocks and processed efficiently.

Wijaya emphasized, however, that B50 implementation must proceed gradually and be supported by scientific evidence.

Sustainable feedstock availability, stable pricing, distribution infrastructure, national quality standards and engine compatibility testing are all essential prerequisites before widespread adoption.

Meeting these requirements will help ensure that B50 is implemented safely, effectively and with long-term benefits.

The success of B50 depends on collaboration among the government, universities, the National Research and Innovation Agency (BRIN), the biodiesel industry, vehicle manufacturers, farmers, businesses and the public.

Such collaboration is needed to accelerate the development of alternative feedstocks, advance more efficient catalyst technologies, strengthen national quality standards and build a resilient, sustainable biodiesel supply chain. READ MORE

Excerpt from Palm Oil Magazine: Dida Gardera, Expert Staff for Connectivity and Service Development at the Coordinating Ministry for Economic Affairs, said the government is continuously reviewing the implementation of the B50 mandate and its implications for palm oil fund revenues, exports, and prices received by smallholders.

According to Dida, the government is also reassessing the accuracy of Indonesia’s national palm oil production data to ensure future policy decisions are based on more reliable information.

“The biodiesel mandate remains a priority. At the same time, the government continues to safeguard cooking oil availability while supporting the development of smallholder plantations,” he said.

Dida noted that Indonesia’s experience with the B40 biodiesel mandate throughout 2025 increased domestic palm oil consumption by approximately 3–4 million metric tons. Despite the additional domestic demand, Indonesia’s export performance remained resilient.

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Beyond financing biodiesel incentives, BPDP funds continue to support a broad range of strategic initiatives, including cooking oil subsidies, research and development, human resource capacity building, scholarship programs, and the Smallholder Palm Oil Replanting Program (PSR).

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He added that, so far, the higher export levy has not negatively affected Indonesia’s palm oil market. Instead, FFB (fresh fruit bunch) prices at the farm level have continued to strengthen, supported by robust demand from both domestic processors and export markets. READ MORE

Excerpt from Trade Arabia News Service: Indonesia's mandatory B50 biodiesel programme is expected to save the country around Rp170 trillion ($10.8 billion) in foreign exchange in 2026, as the government accelerates efforts to strengthen energy security and reduce reliance on imported fuel.

The Energy and Mineral Resources (ESDM) Ministry said the policy marks a major step towards energy independence, with half of every litre of diesel consumed nationwide now sourced from domestically produced palm oil-based biodiesel.

“The B50 programme provides real economic benefits for the country. It is projected to save Indonesia around Rp170 trillion (approximately $10.8 billion) in foreign exchange throughout 2026,” ESDM spokesperson Dwi Anggia said.

The ministry said the savings would support national development, shield the economy from volatile global oil prices and generate up to 2.1 million jobs.

It also projected the programme would cut greenhouse gas emissions by 44.46 million tonnes of CO2 in 2026.

President Prabowo Subianto announced Indonesia would stop importing diesel from July 2026 following the successful rollout of B50, making the country the first to produce a diesel blend containing 50 per cent palm oil-based biodiesel.

"We have succeeded in becoming the first country in the world to produce B50,” Prabowo said. “We are now producing diesel fuel from palm oil. So, starting this July, we will no longer import diesel fuel from abroad." READ MORE

Excerpt from Tempo English: Pertamina Patra Niaga completed its first B50 shipment totaling 12,830 kiloliters (KL) from two refineries. The initial delivery departed from the Kasim Refinery on July 18, carrying 4,600 KL aboard the tanker MT Krasak. A second shipment of 8,230 KL left the Plaju Refinery for the Integrated Terminal Palembang on July 22.

Pertamina Patra Niaga Vice President of Corporate Communication Kitty Andhora described the first shipments as a key milestone in the rollout of the government's B50 mandate.

"The first B50 shipments from the Kasim and Plaju refineries mark Pertamina Patra Niaga's concrete contribution to strengthening Indonesia's energy independence, resilience, and sovereignty through the implementation of the government's B50 program," Kitty said in a written statement on Friday, July 24.

The fuel will be distributed to service stations across western and eastern Indonesia. Before reaching consumers, Pertamina has prepared the necessary infrastructure, quality assurance systems, and operational safety measures to support nationwide distribution.

Kitty explained that diesel and FAME are blended in stages until they reach the required 50:50 composition. The fuel is then tested in laboratories to ensure it complies with specifications set by Indonesia's Ministry of Energy and Mineral Resources before being transported to fuel terminals and distributed to gas stations.

According to Kitty, the B50 program is expected to generate economic benefits by reducing diesel imports while helping lower greenhouse gas emissions.

"This program is expected to reduce Indonesia's dependence on imported diesel fuel," she said. READ MORE

Excerpt from Live Mint: RBI has linked broad-based rise in edible oil prices to growing biofuel demand, with Indonesia's higher palm oil blending mandate emerging as a key factor.

The Reserve Bank of India (RBI) has linked the recent broad-based rise in edible oil prices to the growing diversion of edible oils for biofuel production, citing Indonesia's decision to raise its mandatory palm oil biodiesel blending from 40% to 50% as a key factor in its assessment.

In the July edition of its State of the Economy report, published in the RBI Bulletin on 22 July, the central bank said prices of key food items recorded broad-based sequential increases through 20 July.

While rice and wheat prices firmed up and the pace of increase in pulses moderated, edible oil prices “continued to show a broad-based increase amidst use of edible oils for biofuel production”. A footnote accompanying the observation cites Indonesia's increase in its palm oil biodiesel blending mandate from B40 to B50.

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India sources palm oil from Indonesia and Malaysia, soybean oil from Argentina and Brazil, and sunflower oil from Ukraine and Russia. Palm oil accounts for the largest share of India's edible oil imports, while Indonesia is the world's largest producer and a key supplier.

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The RBI also said vegetable prices continued to rise during the period, led by onions, while rice and wheat prices firmed up. The pace of increase in pulses moderated, with moong dal recording a marginal month-on-month decline.

The report did not quantify the impact of Indonesia's higher biodiesel blending mandate on domestic edible oil prices. It identified the use of edible oils for biofuel production as a factor behind the recent broad-based increase in prices, while referencing Indonesia's policy shift. READ MORE

Excerpt from Muslim Network TV: Andry Satrio Nugroho, head of industrial and transport decarbonization at INDEF, an Indonesian economic research institute, describes B50 as an important bridge for sectors where electric alternatives remain difficult to deploy.

“Our overall position is that B50 works as a bridge,” Nugroho told MNTV. “It buys time for sectors that cannot yet run on electricity.”

That bridge could prove particularly important in a country spread across thousands of islands, where heavy trucks, ships, agricultural machinery, mining equipment, and generators in remote areas cannot easily be replaced by electric alternatives.

By replacing half of the fossil component in diesel with domestically produced palm-based biodiesel, Indonesia is seeking to reduce its exposure to international oil markets while making greater use of its own agricultural resources.

The scale of the change is significant. Indonesia’s biodiesel allocation for 2026 has risen from 15.65 million kiloliters to 17.60 million kiloliters. Every liter of biodiesel blended into diesel represents a liter of fossil gasoil that does not need to be imported.

That substitution has implications beyond the fuel sector. Indonesia is one of the world’s largest palm-oil producers, and the B50 program is creating additional domestic demand for crude palm oil.

Nugroho estimates the higher mandate will direct approximately 1.7 million additional tonnes of crude palm oil toward fuel production.

That could support the country’s millions of palm-oil smallholders by strengthening domestic demand and potentially firming up farm-gate prices for fresh fruit bunches — the harvested palm clusters that are pressed into oil.

For rural communities dependent on palm cultivation, the biodiesel program therefore represents more than an energy policy; it is also part of a broader effort to create a stronger domestic market for agricultural production.

Cutting dependence on imported diesel

Energy security is at the heart of Indonesia’s biodiesel strategy. International oil markets have repeatedly shown how geopolitical tensions can rapidly increase the cost of imported fuel.

The disruption surrounding the Strait of Hormuz — the narrow Gulf waterway through which much of the world’s oil passes — has offered a recent reminder of the vulnerability of countries dependent on global fossil-fuel supply chains.

B50 gives Indonesia another option. Instead of relying entirely on imported diesel, the country can produce a substantial share of its transport fuel from a domestic agricultural commodity. Nugroho said the policy is especially relevant for sectors that cannot quickly shift to electric power. READ MORE