B50 is a blended fuel containing 50 percent biofuel—mainly derived from palm oil—and 50 percent conventional diesel. Currently, the government is promoting B40, which consists of 40 percent biofuel and 60 percent diesel.
“We are evaluating B40 and planning to begin the implementation of the B50 program next year, in 2026,” Tanjung stated in Bojonegoro District, East Java, on Thursday (June 26).
However, he noted that the government had not ruled out the possibility of accelerating the B50 timeline, depending on the country’s capacity to produce sufficient fatty acid methyl esters (FAME)—a key biodiesel component derived from vegetable oils through transesterification.
“It is crucial to boost the production of FAME, as the supply must match the requirements of the B50 program. If possible, we will expedite its implementation,” he remarked.
Earlier, Agriculture Minister Andi Amran Sulaiman projected a rise in global crude palm oil (CPO) prices as a result of Indonesia’s shift toward B50.
Speaking in Jakarta in May, Sulaiman noted that the government plans to allocate around 5.3 million tons of CPO for B50 production in 2026.
“Last year, we exported 26 million tons of CPO. What will happen if we cut exports to 21 million tons? Prices will rise,” he explained.
He underlined that Indonesia currently supplies 65.94 percent of the world’s CPO, suggesting that reducing exports to support domestic biodiesel use would likely drive up global prices.
“A rise in CPO prices will mean better welfare for farmers, right? We will be pleased to see our farmers prosper,” he told reporters.
Related news: Minister observes biodiesel program development in South Papua
Related news: Need additional 2 mln tons methanol to make B50: govt
Related news: Indonesia's B50 biodiesel plan may boost global CPO prices: minister
Translator: Maria C, Tegar Nurfitra
Editor: Azis Kurmala
Copyright © ANTARA 2025
