Prabowo says B50 biodiesel mandate to begin this year amid energy concerns

President Prabowo Subianto said the government plans to implement a mandatory B50 biodiesel policy this year, increasing the palm oil content in diesel fuel as geopolitical tensions heighten energy security concerns.

Speaking during a visit to Tokyo on Monday, Prabowo said the policy would raise the palm oil blend in diesel from 40% to 50%, as part of a broader push to expand biofuel use.

“The geopolitical situation in the Middle East gives strategic uncertainty for the security of our energy,” he said, adding that the country is moving “in a big way to biofuel.”

The B50 mandate follows the rollout of the B40 program, which helped save about Rp130.2 trillion (around $7.7 billion) in foreign exchange in 2025 by reducing reliance on fuel imports.

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The policy push comes as global energy markets face pressure linked to tensions in the Middle East, including disruptions affecting key oil shipping routes.

Authorities have also explored the possibility of increasing the blend further to 60% palm oil in biodiesel if needed.

Industry groups have raised concerns about supply constraints, with Indonesian Palm Oil Association warning that higher blending mandates could impact exports unless production increases.

The association said stagnant output would need to be addressed through productivity improvements to meet both domestic demand and export commitments.

Trials for the B50 program are expected to be completed in the second half of 2026.

Prabowo’s visit to Tokyo includes meetings with Japanese officials and business leaders, where energy cooperation and investment have been among the key topics discussed.

Editing by Alexander Ginting