Jakarta – Throughout 2025, the government noted that the implementation of B40 biodiesel was able to reduce emissions by tens of millions of tonnes of carbon while boosting the added value of crude palm oil (CPO) by tens of trillions of rupiah. According to the Ministry of Energy and Mineral Resources (MEMR), this mandatory policy not only strengthens efforts to reduce greenhouse gas emissions but also has a significant economic impact on the national palm oil sector.
On Thursday, 8 January, Minister of Energy and Mineral Resources Bahlil Lahadalia stated that the biodiesel programme, which uses a blend of 40 per cent palm-based biofuel and 60 per cent diesel, has become one of the main instruments for strengthening Indonesia’s energy security. One of the most noticeable impacts is the sharp decline in diesel imports compared to the previous year.
“If we compare, solar imports in 2024 will still be around 8 million tonnes. In 2025, that figure will be reduced to around 5 million tonnes,” said Bahlil during a press conference on the performance of the Ministry of Energy and Mineral Resources in 2025.
He explained that this achievement was supported by the realisation of domestic biodiesel utilisation exceeding the target. Data from the Ministry of Energy and Mineral Resources shows that biodiesel consumption from January to December 2025 reached 14.2 million kilolitres, exceeding the Key Performance Indicator target of 13.5 million kilolitres. This performance is equivalent to 105.2 per cent of the target set by the government.
According to Bahlil, this success provides a strong foundation for the government to take further steps. One of the major targets currently being prepared is the complete cessation of diesel imports starting in 2026. The government is also preparing to trial a higher blend of biodiesel, namely B50, which is planned to be completed in the first half of 2026 before a decision is made on its widespread implementation.
“If the B50 trial goes well and domestic processing capacity is ready, then solar imports will no longer be necessary,” he said.
In addition to reducing dependence on foreign energy supplies, the biodiesel policy also helps conserve foreign exchange reserves. Throughout 2025, the government recorded foreign exchange savings of Rp130.21 trillion. At the same time, this policy reduced carbon emissions by around 38.88 million tonnes of CO₂ equivalent.
Not only that, but the B40 programme also creates added economic value domestically. The processing of CPO into biodiesel throughout last year generated an additional economic value of around Rp20.43 trillion, which is considered to have strengthened the national palm oil industry chain.
The government’s optimism for achieving a solar import-free Indonesia by 2026 is also supported by the operation of the Balikpapan Refinery Development Master Plan (RDMP) project in East Kalimantan. The project is projected to significantly increase domestic solar production capacity.
“With the combination of B50 and the imminent operation of RDMP in East Kalimantan, national diesel fuel demand can be met domestically,” said Bahlil.
However, he acknowledged that there are still certain types of diesel fuel with high specifications, such as Solar CN51, which is needed for the heavy equipment industry, that currently still need to be met through limited imports. This is because domestic production capacity for this type of fuel is still in the development stage.
The government has confirmed that evaluations will continue to be carried out to ensure that the biodiesel policy not only provides environmental benefits, but also maintains the sustainability of energy supplies and the competitiveness of the national industry. (Hartatik)
Banner photo: Scharfsinn/shutterstock.com
