Indonesia's B50 Biodiesel Program Saves $11.5 Billion Annually, Minister Claims

Indonesia's implementation of the B50 biodiesel program is projected to save the nation Rp 177 trillion annually, according to Coordinating Minister for Economic Affairs Airlangga Hartarto. Speaking at a diplomatic economic breakfast in Jakarta on July 10, 2026, Hartarto highlighted that the program eliminates the need for imported solar fuel, thereby bolstering national energy security.

"With B50, we no longer import solar and we save Rp 177 trillion in foreign exchange, and contribute to net-zero emissions of 44 million tons of CO2 equivalent," Hartarto said. He emphasized that the program, recently launched by President Prabowo Subianto, demonstrates Indonesia's capability to achieve energy self-sufficiency by utilizing palm oil as a biodiesel feedstock.

The foreign exchange savings are particularly crucial given the rupiah's fluctuating exchange rate and rising global energy prices, which have previously led to monthly trade balance deficits due to increased fuel import costs. Despite these challenges, Hartarto asserted that Indonesia's economic fundamentals remain robust, with economic growth around 5.05 percent and inflation controlled at approximately 2.5 percent.

The government views the B50 implementation as a key strategy to reduce the burden of energy subsidies within the state budget. Furthermore, the development of biodiesel is expected to mitigate the impact of global geopolitical uncertainties, such as conflicts in the Middle East, on energy supply and prices. Indonesia has been developing its biodiesel program for eight years and is the first country to implement the B50 mandate.

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With B50, we no longer import solar and we save Rp 177 trillion in foreign exchange, and contribute to net-zero emissions of 44 million tons of CO2 equivalent.