B50 biodiesel policy aids rupiah and trade balance, economist says

Indonesia's mandatory B50 biodiesel program, which requires a 50% blend of palm oil-based biodiesel with fossil fuel, is receiving positive assessment from economists for its potential economic benefits. The policy is viewed as a tool to support the national currency and improve the country's trade balance.

Josua Pardede, Chief Economist at Permata Bank, stated that the B50 mandate can positively influence the movement of the rupiah. He further noted that this initiative is expected to contribute to a healthier trade balance for Indonesia, a key economic indicator for the nation.

Crucially, Pardede indicated that these economic advantages can be achieved without placing an additional burden on the state budget. This suggests that the program is structured to be fiscally sustainable while delivering on its economic objectives, aligning with broader national economic strategies.