PALMOILMAGAZINE, JAKARTA – The Indonesian government has reaffirmed its commitment to advancing the mandatory biodiesel program, targeting the transition to B40 in 2025 and progressing toward B50 and beyond. This initiative aims to sustain national energy sovereignty while ensuring no disruption to the supply of palm oil for the food and oleochemical industries.
Speaking at a national seminar hosted by Rumah Sawit Indonesia (RSI) on Monday (18/11) in Jakarta, Deputy for Food and Agribusiness Coordination at the Coordinating Ministry for Economic Affairs, Dida Gardera, emphasized that funding for the program has been meticulously planned. “Our analysis with BPDPKS shows that the available funds are sufficient to support the implementation of the B40 policy in 2025,” he stated during the seminar, attended by Palmoilmagazine.com.
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Dida highlighted that the biodiesel program is designed not only to enhance energy sovereignty but also to stabilize crude palm oil (CPO) prices, reduce greenhouse gas (GHG) emissions, and improve the trade balance by cutting fuel imports. “Expanding palm oil use for biodiesel will yield extensive benefits, including significant foreign exchange savings and environmental protection,” he added.
Since the establishment of the Palm Oil Plantation Fund Management Agency (BPDPKS) in 2014, the biodiesel mandate has made substantial strides. Starting with the B15 policy, which distributed 915,000 kiloliters (KL) in 2014, the program has now achieved B35 implementation, targeting 13.4 million KL by 2024. According to Dida, B35 has already saved IDR 139.9 trillion in foreign exchange and cut GHG emissions by 32.6 million tons of CO2.
For 2025, the government targets the implementation of B40 with a distribution volume of 16.08 million KL. Funding of Rp 37.5 trillion will be prepared through BPDPKS. “We are optimistic that the B40 to B50 program can run well, in line with the government’s target to achieve Net Zero Emission 2060 and accelerate the use of renewable energy,” said Dida.
The seminar themed “Achieving Food, Energy, and Economic Sovereignty through Oil Palm Plantations for a Golden Indonesia 2045” emphasized the strategic role of oil palm in supporting Indonesia’s economic, energy, and environmental transformation towards a sustainable future. (P2)
