Enviro News Asia, Makassar – The mandatory biodiesel policy has proven to deliver significant economic benefits, particularly in terms of foreign exchange savings and job creation.
According to data from the Ministry of Energy and Mineral Resources (MEMR), in 2024 and 2025, Indonesia succeeded in saving USD 17.19 billion in foreign exchange, equivalent to IDR 271.78 trillion.
In an official statement from the MEMR, the program was launched to meet domestic fuel needs by blending biodiesel with diesel fuel.
As of 2025, Indonesia has implemented the B40 biodiesel mandate, and the government plans to increase the blend to B50 next year.
“This mandatory biodiesel policy is a government program to meet domestic fuel needs by mixing biodiesel with diesel. In 2025, we have already mandated B40 biodiesel, and we are planning to implement B50 next year,” said Deputy Minister of Energy and Mineral Resources Yuliot at the 4th National Working Meeting of the Indonesian Buddhist Community Association (Permabudhi) in Makassar on Saturday (June 28).
The use of Crude Palm Oil (CPO) as the raw material for biodiesel is expected to enhance national energy resilience while reducing dependence on imported fuel.
This step aligns with President Prabowo Subianto’s Asta Cita vision to achieve national energy self-sufficiency.
In addition to saving foreign exchange, the mandatory biodiesel policy also stimulates domestic industrial growth and creates jobs.
In 2024, the B35 mandate absorbed around 12,000 workers in the off-farm sector and 1.64 million people in the on-farm sector. Meanwhile, in 2025, the B40 mandate is projected to employ 14,000 off-farm workers and 1.95 million on-farm workers.
Since its launch in 2015 with B20, the program has progressively advanced—reaching B30 in 2020 and peaking in January 2025 with B40, the highest blend level achieved globally.
This success is attributed to the synergy and collaboration of various stakeholders. Moving forward, the government will continue to increase the biodiesel blend in diesel fuel beyond 40% to reduce greenhouse gas emissions and strengthen national energy security. (*)
