KARAWANG – The Indonesian government has officially launched the mandatory B50 biodiesel program, consisting of a blend of 50% palm-based biofuel and 50% diesel. The launch was presided over by President Prabowo Subianto on July 9, 2026, in Karawang, West Java.

This strategic move underscores the government's strong commitment to accelerating the energy transition and strengthening national fuel self-sufficiency. With the implementation of B50, Indonesia will no longer need to import diesel, as domestic demand will be met through local biofuel production.

Economically, the policy is projected to save the state up to IDR 170 trillion in foreign exchange throughout 2026. Furthermore, the government has ensured that the public retains access to subsidized Biosolar at a stable price of IDR 6,800 per liter.

The B50 program is currently in a transition phase to prepare the entire distribution chain. The government targets full availability and sales of B50 at all gas stations across Indonesia starting October 1, 2026.

Source : Summary of Renewable Energy (EBT) sector developments as of July 2026.