Indonesia Prepares to Launch B50 Biodiesel and E10 Ethanol Fuel Blends
19/10/2025 (Jakarta Globe), Jakarta - Energy and Mineral Resources Minister Bahlil Lahadalia met with President Prabowo Subianto on Sunday to report progress on the government’s key biofuel and ethanol fuel programs, designed to cut oil imports and strengthen energy independence.
The meeting discussed preparations for the B50 biodiesel program, which blends 50 percent palm oil-based biofuel with diesel, and the E10 program, which mixes 10 percent ethanol with gasoline. Both are central to the government’s long-term energy diversification agenda.
The B50 and E10 fuel programs build on earlier initiatives under the previous administration but place a stronger emphasis on palm oil–based biofuels and ethanol as strategic domestic energy sources.
“We discussed the readiness of implementing the B50 biodiesel program and the E10 ethanol fuel for gasoline. The President asked for an update on progress and implementation readiness,” Bahlil said after the meeting at Prabowo’s residence on Jalan Kertanegara IV, South Jakarta.
The biofuel initiative has already reached a significant milestone with the B40 program, which mandates a 40 percent biofuel blend in diesel nationwide. The government plans to launch B50 next year, marking the next step toward energy self-sufficiency.
According to government data, between 2020 and 2025, Indonesia’s biodiesel program has saved $40.7 billion in foreign exchange reserves by reducing fossil fuel imports. Once B50 is fully implemented, the country is expected to eliminate diesel imports entirely, relying solely on domestic production.
The one-hour meeting also covered plans to legalize and regulate community-operated oil wells, commonly known as marginal wells. Bahlil said he had recently visited Musi Banyuasin Regency in South Sumatra, home to around 22,000 small-scale oil wells, each producing about two barrels of oil per day.
“The President instructed that the legalization of community oil wells be prioritized,” Bahlil said, adding that the wells could meaningfully boost national oil output once properly regulated.