Jakarta – Minister of Energy and Mineral Resources Bahlil Lahadalia said in a press conference on Friday, January 3, that Indonesia is officially embarking on a significant step in the energy transition by launching a mandatory B40 biodiesel program starting January 1, 2025. The government has set a biodiesel allocation of 15.6 million kiloliters (kl) to support the program’s implementation.
“We are starting the B40 program with measured steps. This is a new milestone in our efforts to reduce dependence on fossil fuel imports,” Bahlil said.
According to him, the B40 program aims to reduce carbon emissions and increase national energy independence. Bahlil explained that the implementation of B40 was carried out in stages to ensure infrastructure readiness, fuel quality, and the readiness of the automotive industry to use biodiesel with a blend level of 40 per cent.
Preparation for B50
Bahlil also revealed that the B40 program will only run for one year, as the government has targeted the transition to B50 biodiesel in 2026. In developing B50, the government focuses on improving biodiesel quality, especially regarding water content.
He added that by implementing B50, Indonesia could potentially stop diesel imports completely. “This is a directive from the President. Energy security is a priority, and this move will bring us closer to energy independence,” he added.
However, the implementation of the B40 program is not without challenges. One of the main challenges is the readiness of the automotive industry to adapt their engine technology to B40 biodiesel. On the other hand, the government is optimistic that the synergy between various parties, including the palm oil industry, biodiesel producers, and the transportation sector, will ensure the success of this program.
In addition, biodiesel industry players welcomed this policy. Chairman of the Indonesian Biofuel Producers Association (Aprobi), MP Tumanggor, believes this policy will positively impact the domestic economy. “The B40 program not only strengthens energy security but also supports the stability of CPO (crude palm oil) prices in the international market,” he said.
With the allocation of 15.6 million kl of biodiesel this year, the government expects a significant reduction in diesel imports, which has been one of the biggest expenses in the energy sector. This policy is also projected to significantly reduce carbon emissions, in line with Indonesia’s commitment to the Paris Agreement.
The B40 program is expected to be a solid first step towards clean energy transition and national energy independence. “This is not just about energy but also about a greener and more independent future for Indonesia,” Bahlil concluded. (Hartatik)
