Study finds B50 biodiesel mandate needs governance reform

A new study assesses the planned implementation of the mandatory B50 biodiesel blend as potentially strengthening national energy security, but says it will require governance reform to keep energy, economic, social and environmental impacts balanced. At a seminar in Jakarta, Traction Energy Asia Executive Director Tommy Ardian Pratama said the costs and consequences of B50 have not been fully calculated, including fiscal burdens, carbon debt, the potential for engine damage and net social benefits. Universitas Padjadjaran researcher Yayan Satyakti added that B50’s success also depends on technology readiness, feedstock productivity, regulatory certainty and the institutions that manage financing and incentives. The government, through a representative of Kemenko Perekonomian, also highlighted challenges in supply, distribution and BPDP funding.