Antara News (20/07/2026) - Jakarta (ANTARA) - The Coordinating Ministry for Economic Affairs has assured that the mandatory implementation of the 50 percent biodiesel (B50) program will not reduce Indonesia's crude palm oil (CPO) export volume.

Expert Staff for Connectivity and Service Development at the ministry, Dida Gardera, stated here on Monday that the assurance is backed by the country’s successful track record during the transition from B35 to B40 in 2024.

"From 2024 to 2025, as we stepped up from B35 to B40, domestic palm oil demand grew by roughly 3 to 4 million kiloliters (KL). Crucially, our exports also increased by 3 to 4 million KL over that same period,” Dida explained.

He emphasized that the government is maintaining a delicate balance to ensure that international trade is not compromised, as robust exports serve as an essential incentive for the domestic biodiesel sector.

According to him, the government has prioritized three key sectors in its palm oil strategy: the B50 mandate, the domestic availability of cooking oil, and the welfare of smallholder plantations.

To ensure the simultaneous success of these three priorities, the ministry continues to coordinate closely with relevant agencies, including the Plantation Fund Management Agency (BPDP).

"We will certainly continue to monitor and evaluate the situation. But so far, in terms of CPO volume, we have been able to meet all domestic and international needs. Thank God, the budget and cash flow also remain sufficient," he added.

The government officially launched the B50 mandate in July 2023 as part of its strategic efforts to reduce carbon emissions and strengthen national energy security.

Beyond its environmental benefits, the B50 policy is projected to save the country approximately Rp170 trillion (US$9.48 billion) in foreign exchange by the end of 2026, boost the added value of domestic CPO, and create employment opportunities for around 2.1 million people.

While the policy is officially underway following its presidential launch two weeks ago, full integration will follow a phased timeline.

A three-month transition window has been established to allow fuel distributors to deplete existing B40 stocks and adjust technical blending processes to meet the B50 standard.

"Everything is ready in the field. However, there will naturally be a transition process due to residual B40 stocks. In principle, the program is already running, and we will continue our strict monitoring and evaluation," Dida concluded.

Read more at https://en.antaranews.com/amp/news/423301/govt-assures-b50-mandate-not-affect-cpo-exports