Indonesia rolls out mandatory B50 biodiesel to boost energy security and jobs

Indonesia has become the first country to implement a mandatory 50 % biodiesel blend (B50), replacing the earlier B40 mandate. President Prabowo Subianto inaugurated the program at Rest Area KM 57 on the Jakarta‑Cikampek toll road, highlighting its role in strengthening national energy sovereignty, cutting fossil‑fuel imports and saving foreign exchange. The government projects that B50 could create about 2.1 million jobs across the palm‑oil supply chain—from plantations and crude‑palm‑oil processing to biodiesel plants, distribution and related services. The primary feedstock is domestic crude palm oil, with alternative sources such as used cooking oil, tamanu and kemiri oils also being explored to diversify supply. Extensive technical testing on vehicles, heavy equipment, agricultural machinery, rail, maritime vessels and power generators has confirmed that B50 does not damage engines. Toll‑road operator Jasa Marga is preparing rest‑area fuel stations to dispense the new fuel, coordinating with state oil company Pertamina. Analysts note that the mandate reduces Indonesia’s vulnerability to external energy shocks and could enhance its geopolitical standing. However, experts warn that the program’s success depends on upgrading logistics and transport networks to move feedstock from Sumatra, Kalimantan and Sulawesi to refineries and distribution points nationwide.