President Prabowo Subianto announced a strategic policy to implement Biodiesel B50 by 2025, expediting the target from the previously planned B40. This initiative aims to reduce dependence on fossil fuels while promoting energy sustainability and transitioning toward a low-carbon economy. With B50, 50 percent of diesel fuel will be derived from palm oil-based biodiesel, capable of reducing carbon emissions by up to 70 percent. This policy is projected to cut emissions by 25 million tons of CO2e by 2025, while also generating economic value of up to IDR 90 trillion and creating 500,000 new jobs.
As the world’s largest palm oil producer, Indonesia has a competitive advantage to lead the global biodiesel market, with export potential to the European Union, China, and India. This policy also strengthens national energy security by reducing fossil fuel imports and mitigating fluctuations in global oil prices. The government continues to encourage the adoption of advanced technologies such as second-generation biofuels and the Indonesian Sustainable Palm Oil (ISPO) certification to ensure sustainability in palm oil agribusiness, positioning this green energy transition as a strategic solution toward achieving net zero emissions by 2060.