Prabowo Launches Mandatory B50 Biodiesel to End Diesel Imports

President Prabowo Subianto inaugurated Indonesia's mandatory B50 biodiesel program on July 9, 2026, at the KM 57 rest area in Karawang, West Java. The mandate increases the required palm oil content in all domestically sold diesel from 40 percent to 50 percent, making Indonesia the first country in the world to implement such a requirement. The initiative aims to achieve national energy sovereignty by eliminating the annual import of 3 million to 4 million kiloliters of diesel products.

To ensure the program's stability, the government amended trade regulations under Minister of Trade Regulation No. 20/2026 to prioritize domestic cooking oil supplies over exports, introducing penalties such as warehouse closures for non-compliance. The government previously tested the blend across six sectors, including automotive, maritime, and railways. Bahlil Lahadalia reported that six-month road tests showed B50 is safe for Asian and European vehicles and offers superior filter longevity compared to B40.

By the end of 2026, the program is projected to save approximately Rp170 trillion in foreign exchange, sustain 2.1 million jobs, and reduce greenhouse gas emissions by 44.46 million tons of CO2 equivalent. Technical experts cautioned that commercial engine safety requires ongoing monitoring. President Prabowo also indicated plans to utilize coal and natural gas reserves to eliminate liquefied petroleum gas imports through compressed natural gas.