B50 biodiesel seen cutting diesel imports, saving Rp170 trillion
Supporters say the savings could free fiscal room for technology transfer, but palm oil supply and financing must be strengthened.
The rollout of B50 biodiesel is seen as strengthening Indonesia's energy self-reliance by cutting diesel imports and saving up to Rp170 trillion in foreign exchange. Robert Winerungan, an economist at Universitas Negeri Manado, said the savings could give Indonesia room to finance technology transfer and reduce dependence on fuel imports. He also said higher palm oil absorption for biodiesel could help sustain demand and stabilize prices for the commodity. Energy economist Yayan Satyakti of Universitas Padjadjaran said the benefits of B50 would be greater if supported by a stronger enabling ecosystem, including productivity at smallholder palm plantations, feedstock diversification, and financing. He referred to Keputusan Menteri ESDM Nomor 113.K/EK.05/MEM.E/2026, which sets the biodiesel blending direction through 2030.