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Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia said that the government had started the implementation of biodiesel 40 percent (B40) on 01 January 2025.
“The Ministry of Energy and Mineral Resources (KESDM) has just conducted an internal meeting to discuss the details of the B40 program. We’ve decided to upgrade the current B35 to B40 program since 01 January 2025,” Minister Bahlil said during a press conference at the KESDM office building in Jakarta on Friday (3/1/2025).
According to Bahlil, the B40 implementation is in line with the vision of President Prabowo Subianto in what he calls the Asta Cita agenda, which aims to realize food and energy self-sufficiency based on green principles toward reaching net zero emission in 2060.
“The government has even prepared to further upgrade the B40 program to B50 in 2026. If it is well implemented, then our import of diesel fuel will be gradually reduced and in 2026 we’ll no longer import diesel fuel,” said Bahlil.
KESDM’s Renewable Energy and Energy Conservation Director General Eniya Listiani Dewi said that the mandatory program of B40 will reduce Indonesia’s import of diesel fuel and save foreign exchange. “Foreign exchange savings from the B40 program are estimated at Rp147.5 trillion, while from the B35 program at Rp122.98 trillion. It means we can further increase our saving of foreign exchange at around Rp25 trillion by reducing the import of fossil diesel fuel,” she said.
Besides the economic benefits, the biodiesel mandatory program has also significantly given social and environmental benefits. The biodiesel program has increased the added value of crude palm oil (CPO) to around Rp20,9 trillion, absorption of workers at more than 14,000 people (off-farm) and 1.95 million people (on-farm), and reduction of greenhouse gas emission (GHG) at 41.46 million tons of CO2e per year.
In 2025, the government has determined the allocation of B40 at 15.6 million kilolitres (kl), consisting of 7.55 million kl for public service obligation (PSO), and 8.07 million kl for non-PSO.
The implementation of the B40 mandatory program is based on the ESDM ministry’s decree No.341.K/EK.01/ MEM.E/2024 on the use of biofuel as a mixture of fossil diesel fuels and fatty acid methyl ester (FAME) from CPO, which is 40% financed by the oil palm plantation fund management board (BPDPKS). The biodiesel distribution is supported by 24 biofuel companies, and 2 oil-gas companies for PSO and non-PSO, while 26 oil-gas companies are specially assigned to distribute B40 for non-PSO.
Source: Online/OFA
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