ASIATODAY.ID, JAKARTA – The Indonesian government is taking a bold step toward achieving energy sovereignty by targeting a complete halt to diesel fuel imports by 2026.
This decisive policy was announced by Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia during his keynote speech at the Investor Daily Summit 2025.
Addressing industry leaders, Bahlil stated that the full implementation of the B50 mandatory biodiesel program—a 50% blend of biofuel—will serve as the cornerstone for replacing all imported diesel needs.
“Under the directive of the President, it has been decided that by 2026, God willing, we will move forward with B50. This means Indonesia will no longer import diesel fuel,” Bahlil asserted in Jakarta on Thursday, October 9, 2025.
This policy builds on the success of Indonesia’s existing biodiesel program, which has significantly reduced import dependency while saving substantial foreign exchange.
According to data from the Ministry of Energy and Mineral Resources, biodiesel utilization between 2020 and 2025 has saved USD 40.71 billion in foreign exchange. With the implementation of B50, the government projects an additional annual saving of USD 10.84 billion starting in 2026.
Technically, the B50 program is designed to eliminate the remaining diesel import quota still required under the current B40 policy. Data shows that in 2025, Indonesia’s diesel imports are projected to reach 4.9 million kiloliters, equivalent to 10.58% of total national demand.
The B50 mandate will massively increase the proportion of Fatty Acid Methyl Ester (FAME) in diesel fuel, enabling complete substitution of imports and ensuring that Indonesia’s diesel supply is sourced entirely from domestic resources.
“This is a strategic decision and a clear demonstration of the government’s commitment to our energy sovereignty,” Bahlil emphasized.
“We cannot continue to rely on imports that drain our foreign reserves and expose us to global price volatility. Through B50, we will maximize the potential of our domestic palm oil industry, strengthen the livelihoods of smallholder farmers, and, most importantly, ensure that our national energy resilience is fully in our own hands. This is a step toward true independence.”
To achieve this target, increasing the production capacity of FAME is essential. Supply must be boosted from 15.6 million kiloliters in 2025 to 20.1 million kiloliters in 2026. This expansion will not only benefit the energy sector but also generate significant multiplier effects across the economy, particularly through large-scale job creation—estimated at 2.5 million workers in plantations and 19,000 workers in processing facilities.
Ultimately, the push for B50 implementation in 2026 underscores the government’s broader vision of a “New Economic Order”, a concept highlighted at the summit. It demonstrates that Indonesia is not merely exploring its energy and commodity potential but is actively executing bold policies to transform that potential into real economic power—building stability, resilience, and a foundation for a stronger, more self-reliant Indonesia. (AT Network)
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