Prabowo Launches World's First B50 Biodiesel Mandate, Pushing Indonesia Toward Energy Independence

KARAWANG, Investortrust.id — President Prabowo Subianto officially launched Indonesia's mandatory B50 biodiesel program on Thursday, declaring the country the first in the world to require diesel fuel blended with 50% palm oil-based biodiesel, a move aimed at reducing fuel imports, strengthening energy security, and boosting domestic downstream industries.

The launch took place at the KM 57 Jakarta-Cikampek Toll Road rest area in Karawang, West Java, where Prabowo inaugurated the program alongside Coordinating Minister for Economic Affairs Airlangga Hartarto, Energy and Mineral Resources Minister Bahlil Lahadalia, Investment and Downstream Minister Rosan Roeslani, who also serves as CEO of Indonesia's sovereign wealth fund Danantara, and Pertamina President Director Simon Aloysius Mantiri.

The B50 mandate represents one of Indonesia's most ambitious renewable energy policies and further cements the country's strategy of leveraging its vast palm oil resources to cut dependence on imported diesel fuel. For investors, the program is expected to benefit palm oil producers, biodiesel manufacturers, and state-owned energy company PT Pertamina (Persero) while supporting the government's broader downstream industrialization agenda.

"By launching this program, Indonesia officially becomes the first country in the world to implement a mandatory B50 biodiesel policy," Prabowo said during the ceremony.

He described the initiative as more than a technological milestone, calling it a critical step toward national energy sovereignty.

"This is a very important milestone in our journey toward energy independence," he said.

A Push for Self-Sufficiency

Prabowo said every nation must secure three strategic resources to remain resilient: food, energy, and water.

"Food, energy, and water determine whether a nation can survive, remain sovereign, and achieve prosperity," he said.

The president added that Indonesia had already made significant progress toward food self-sufficiency and was now accelerating efforts to become energy independent.

"I have emphasized since before taking office that Indonesia must achieve food self-sufficiency and energy self-sufficiency. We should no longer depend on imported fuel or imported food," he said.

The B50 mandate requires diesel sold in Indonesia to contain 50% biodiesel derived primarily from crude palm oil.

Economic Impact

The government estimates the policy will generate substantial economic benefits.

Officials project the B50 mandate will save approximately Rp 170 trillion ($10.7 billion) in foreign exchange in 2026, up from Rp 133.3 trillion ($8.4 billion) under the previous B40 program.

The policy is also expected to increase value added from crude palm oil to Rp 23.49 trillion ($1.48 billion), support around 2.1 million jobs, and reduce greenhouse gas emissions by roughly 44.46 million metric tons of carbon dioxide this year.

A Lighthearted Moment

Despite celebrating Indonesia's energy achievement, Prabowo admitted the country still faced another national ambition.

"We can achieve B50, but we still cannot qualify for the World Cup. That still bothers me," he said, drawing laughter from the audience.

The president looked for Youth and Sports Minister and Indonesian Football Association Chairman Erick Thohir, who was absent from the event, before jokingly asking Erick's brother, businessman Garibaldi "Boy" Thohir, to relay the message.

"Football is about national pride. Boy, tell your younger brother," Prabowo said.

He also jokingly asked the minister, "What do we need so Indonesia can qualify for the World Cup?"