TEMPO.CO, Jakarta - President Prabowo Subianto attended the launch of the Mandatory B50 Program at KM 57 Rest Area in Karawang, West Java, on Thursday, as part of the government's efforts to strengthen national energy independence and resilience.
The President arrived accompanied by the Minister of Energy and Mineral Resources, Bahlil Lahadalia; the CEO of Danantara Investment Management Agency, Rosan Roeslani; and the President Director of Pertamina, Simon Aloysius Mantiri.
According to the Presidential Secretariat broadcast, upon arriving at the location, the president received an explanation of the Mandatory B50 Program before entering the podium for the launch event.
As ANTARA reported, several officials greeted the President at the event venue, including West Java Governor Dedi Mulyadi and Coordinating Minister for the Economy Airlangga Hartarto.
The Mandatory B50 Program is part of the government's strategy to reduce dependence on imported fuel oil, increase the added value of national natural resources, and strengthen Indonesia's energy and economic resilience.
The program refers to the Regulation of the Minister of Energy and Mineral Resources Number 4 of 2025 concerning the Business and Utilization of Biofuels and the Decree of the Minister of Energy and Mineral Resources Number 257.K/EK.01/MEM.E/2026 concerning the obligation to mix 50 percent biodiesel into diesel oil.
In practice, biofuel businesses, oil fuel businesses, and distribution businesses are required to meet established quality standards. Violations of these provisions can result in administrative sanctions, ranging from written warnings to revocation of business licenses.
To support the transition period, the government has given fuel companies until September 30, 2026, to exhaust their B40 biodiesel stocks. The Ministry of Energy and Mineral Resources will also evaluate the B50 mandate every three months.
The government stated that it has prepared the technical, supply, distribution, and regulatory aspects of B50 implementation. Testing was conducted in six diesel engine user sectors: automotive, agricultural equipment and machinery, heavy mining equipment, maritime transportation, power generation, and railways. The testing involved ministries and agencies, business entities, associations, academics, technology owners, and industrial users.
Preliminary results indicate that B50 is safe for use and meets performance and compatibility requirements for various diesel engine applications, although some testing is still ongoing.
The B40 program is estimated to save the country Rp133.3 trillion in foreign exchange by 2025. Through the Mandatory B50 Program, foreign exchange savings are estimated to increase to around Rp170 trillion by 2026.
The program is also projected to increase the added value of crude palm oil (CPO) from Rp20.92 trillion to around Rp23.49 trillion, absorb around 2.1 million workers, and reduce greenhouse gas emissions by around 44.46 million tons of CO2 by 2026.
Read: Prabowo Urges Indonesians to Learn from India's Democracy
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