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🇮🇩 Indonesia /Economy & Trade

Mandatory B50 biodiesel program claimed to save $10.8 billion and create 2.1 million jobs

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Indonesia's mandatory 50% biodiesel program (B50) is projected to save $10.8 billion in foreign exchange in 2026.
  • The policy is expected to create 2.1 million new jobs and reduce CO2 emissions by 44.46 million tons.
  • The Ministry of Energy and Mineral Resources emphasizes the program's role in energy independence and economic welfare.

Indonesia's mandatory 50% biodiesel blend, known as B50, is delivering significant economic benefits and bolstering national energy independence, according to the Ministry of Energy and Mineral Resources. The policy ensures that half of the diesel fuel consumed nationwide is derived from domestically grown and harvested crops.

"The B50 program provides real economic benefits to the country," stated Dwi Anggia, spokesperson for the Ministry. "It is projected to save Indonesia's foreign exchange by approximately Rp170 trillion (around $10.8 billion) throughout 2026."

This substantial foreign exchange saving is deemed crucial for funding national development and shielding the economy from volatile global oil market fluctuations. The program's positive ripple effects extend to the labor market, with an estimated creation of up to 2.1 million new jobs across Indonesia. This highlights the beneficial impact of agricultural industry downstreaming on community welfare.

The B50 program provides real economic benefits to the country. It is projected to save Indonesia's foreign exchange by approximately Rp170 trillion (around $10.8 billion) throughout 2026.

— Dwi AnggiaThe spokesperson for the Ministry of Energy and Mineral Resources highlighted the program's financial impact.

Beyond its economic advantages, the B50 mandate is a cornerstone for achieving Indonesia's climate targets. The Ministry projects that the shift to biodiesel will cut greenhouse gas emissions by 44.46 million tons of CO2 by 2026. The ministry is actively monitoring the technical and operational aspects of the program and maintaining close coordination with various sectors, including automotive manufacturers and industry players.

Anggia stressed that the transition to B50 is more than just an energy diversification effort. This carefully tested, phased roadmap is a strategic national instrument designed to maximize public welfare and economic prosperity, moving away from import dependency towards self-sufficiency driven by domestic commodities.

This phased and carefully tested roadmap is a strategic national instrument designed to maximize public welfare and economic prosperity.

— Dwi AnggiaThe spokesperson emphasized the strategic importance of the B50 program beyond energy diversification.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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