Minister Amran Says B50 Biodiesel Will Let Indonesia Steer Global CPO Prices
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JAKARTA, Investortrust.id — Agriculture Minister Andi Amran Sulaiman says Indonesia is ready to strengthen its energy independence through the implementation of the B50 biodiesel program, a move he believes will not only reduce diesel imports but also give Indonesia greater control over global crude palm oil prices.
“We start from our CPO production of 46 million tons. Around 20 million tons are processed domestically, while 26 million tons are exported. The B50 program will require 5.3 million tons of CPO, which means we will redirect that amount from exports to biofuel production to replace imported diesel,” Amran said in Jakarta on Thursday, Oct 9, 2025.
He explained that with B50 in place, Indonesia could completely eliminate imports of 5.3 million tons of diesel fuel, saving foreign exchange reserves while strengthening its role as a dominant force in the global CPO market.
“If our exports, which used to be 26 million tons, suddenly drop to 20 million tons, prices will definitely rise. We’ve experienced increases of up to 100% before. Today, our CPO value stands at Rp 450 trillion. If it doubles, it could reach Rp 800 to 1,000 trillion, even with smaller volume. As the world’s largest producer, accounting for about 58% to 60% of global output, Indonesia should be the one setting the price of CPO, not other countries,” he said.
Amran added that the government would apply flexible policies depending on market conditions. “If global CPO prices rise, we may lower the blend from B50 to B40. But when prices fall, we can increase it back to B50. The key is to ensure what benefits the Indonesian people the most,” he said.
In addition to biodiesel, the government is preparing a strategy to achieve energy independence through ethanol production. Amran noted that the ethanol program is still in the planning phase but forms part of the long-term vision for sustainable energy, ensuring each island becomes self-sufficient.
“Take Kalimantan for example — it used to rely on rice from Java and South Sulawesi, but now it’s food self-sufficient. That’s why our inflation remains stable at around 2.3%, even 1.5% by the end of last year — among the top five lowest in the world,” he said.
The minister emphasized that inter-island self-sufficiency in food and energy would reduce logistics costs and stabilize prices. The government has started directing the cultivation of ethanol-producing crops such as cassava and sugarcane to support this goal.
“The President has tasked us with planting cassava, sugarcane, and other local energy sources. Our country’s vast agroclimatic diversity is ideal for developing food crops, plantations, and horticulture,” Amran said.