Indonesia's mandatory B50 biodiesel programme is expected to save the country around Rp170 trillion ($10.8 billion) in foreign exchange in 2026, as the government accelerates efforts to strengthen energy security and reduce reliance on imported fuel.

The Energy and Mineral Resources (ESDM) Ministry said the policy marks a major step towards energy independence, with half of every litre of diesel consumed nationwide now sourced from domestically produced palm oil-based biodiesel.

“The B50 programme provides real economic benefits for the country. It is projected to save Indonesia around Rp170 trillion (approximately $10.8 billion) in foreign exchange throughout 2026,” ESDM spokesperson Dwi Anggia said.

The ministry said the savings would support national development, shield the economy from volatile global oil prices and generate up to 2.1 million jobs.

It also projected the programme would cut greenhouse gas emissions by 44.46 million tonnes of CO2 in 2026.

President Prabowo Subianto announced Indonesia would stop importing diesel from July 2026 following the successful rollout of B50, making the country the first to produce a diesel blend containing 50 per cent palm oil-based biodiesel.

"We have succeeded in becoming the first country in the world to produce B50,” Prabowo said. “We are now producing diesel fuel from palm oil. So, starting this July, we will no longer import diesel fuel from abroad." -OGN/TradeArabia News Service