PALMOILMAGAZINE, GORONTALO – President Prabowo Subianto has reaffirmed the strategic role of Indonesia’s palm oil industry in achieving national energy independence, positioning biofuel development as a cornerstone of the country’s long-term energy strategy.
Speaking at the closing ceremony of the 17th National Farmers and Fishermen Week (PENAS XVII) in Gorontalo on Wednesday (June 24, 2026), Prabowo said Indonesia’s success in boosting food production should now be followed by similar achievements in the energy sector.
Addressing thousands of farmers and fishermen from across the country, the President emphasized that palm oil-based bioenergy would play a crucial role in reducing Indonesia’s dependence on imported fossil fuels.
Prabowo announced that the government is set to launch the B50 biodiesel program in July 2026. The new mandate will require diesel fuel to contain a 50% blend of palm oil-derived biodiesel, marking a significant expansion of Indonesia’s biofuel policy.
“This July we will launch B50. Fifty percent of diesel fuel will come from palm oil. As a result, we will no longer need to import diesel from abroad,” Prabowo said during a live broadcast monitored by Palmoilmagazine.com.
According to the President, utilizing palm oil as an energy feedstock offers multiple benefits, including strengthening national energy security and creating greater added value for Indonesia’s leading agricultural commodity. He stressed that downstream development of the palm oil industry is essential to transform Indonesia from a raw material supplier into a producer of renewable energy.
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The B50 mandate is also expected to expand domestic demand for palm oil at a time when the industry continues to face volatility in global markets and evolving export challenges. Higher domestic consumption could provide a more stable and sustainable demand base for the sector.
Prabowo expressed confidence that Indonesia could achieve energy self-sufficiency within the next three to four years if downstream industrial development, bioenergy expansion, and renewable energy programs proceed as planned.
“I believe that within three to four years Indonesia can achieve energy self-sufficiency,” he said.
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Palm-based biodiesel has long been a key component of Indonesia’s energy strategy. Following the implementation of B35 and B40 blending mandates, the introduction of B50 represents the next major step in increasing the use of renewable fuels while reducing reliance on imported fossil energy.
The policy is also expected to benefit oil palm farmers by increasing domestic demand for crude palm oil (CPO). Greater absorption of CPO for energy purposes could help support market stability and strengthen the value chain of the national palm oil industry.
During his remarks, Prabowo also highlighted Indonesia’s recent achievements in food self-sufficiency, describing them as evidence that the country can rely on its own resources to meet strategic national needs. He argued that the same principle should be applied to the energy sector.
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The President noted that Indonesia possesses abundant natural resources, including palm oil, that can be optimized to meet domestic energy requirements. Therefore, the government will continue to promote downstream processing of strategic commodities to maximize economic benefits within the country.
Concluding his speech, Prabowo called on farmers, plantation stakeholders, and all elements of society to support Indonesia’s agenda of achieving both food and energy independence.
With the planned launch of B50 and the acceleration of palm oil downstream development, the government hopes Indonesia will not only remain the world’s largest palm oil producer but also become a leading example of how the commodity can support national energy sovereignty. (P3)
