Indonesia begins implementing B50, 50% biodiesel blend
Diesel demand for the program is projected to rise to 16.7-18 million kL, lifting foreign-exchange savings to about Rp 170 trillion.
Indonesia has begun implementing the mandatory B50 program, a 50% blend of biodiesel into diesel fuel, with a launch at Rest Area KM 57 on the Jakarta-Cikampek Toll Road in Karawang, West Java, on Thursday (9/7). The program is aimed at reducing dependence on fuel imports, increasing the domestic value added of palm oil and strengthening energy security. Energy and Mineral Resources Minister Bahlil Lahadalia called B50 a step toward energy diversification based on palm-based biofuels. Data from the Energy and Mineral Resources Ministry show foreign-exchange savings are estimated to rise from Rp 133,3 trillion under B40 to Rp 170 trillion under B50. Value added for the CPO industry is projected to increase from Rp 20,92 trillion to Rp 23,49 trillion, while CO2 emissions are expected to fall by 44,46 million tons.