Indonesia Launches B50 Biodiesel: A Step Toward Energy Sovereignty

Jakarta, VIVA – Indonesian Agriculture Minister Andi Amran Sulaiman conducted the soft launch of B50 Biodiesel in South Kalimantan, marking a historic milestone in national energy independence, which is a grand vision for Indonesia over the next 5-10 years.

"This is a great idea from the current President and the President-elect. Indonesia will become a food granary and energy-independent nation. These two strengths could shake the world," the minister said at the Jhonlin Agro Raya Biodiesel Plant, Batulicin, Tanah Bumbu Regency, South Kalimantan, on Sunday (August 18).

It is believed that the demand for palm oil-based biodiesel is very high, particularly for domestic consumption in realizing national energy security.

According to data from the Directorate General of Plantations Statistics, preliminary figures for 2023 show that palm oil covers an area of 16.8 million hectares with a production of 46.9 million tons.

Minister Sulaiman added that renewable energy has been continuously implemented by President Joko Widodo (Jokowi) since the use of B15 in 2015, B20 in 2019, B30 in 2022, and currently B35, which has been in use since 2023.

In the future, through the national priority energy program, namely the implementation of the B50 biodiesel and E10 bioethanol programs, it is expected that the use of biofuels will continue to increase nationally, thereby reducing crude oil and fuel imports.

“We were launching B50, which is very important and strategic. It can be used as an economic policy tool for the world. Our strength lies in solving the current global crises of food and energy. The solution is in Indonesia," Minister Sulaiman explained.

The minister explained that the government has initiated the use of palm oil in the biodiesel program since 2019, with a prototype development of biodiesel made from 100% palm oil (B100).

Minister Sulaiman feels confident that similar biodiesel prototypes and tests have been carried out by technical ministries/agencies and the biodiesel industry, although currently limited to meeting domestic consumption needs.

"We have been tasked with overseeing the government's readiness in the B50 biodiesel implementation program. This not only involves the supply of raw materials like CPO but also extends much further," he remarked.

Minister Sulaiman revealed that in this process, his ministry is carefully preparing and identifying, along with the Ministry of Energy and Mineral Resources and other relevant ministries/agencies, to carry out technical, economic, fiscal studies, infrastructure readiness, B50 transition, quality standards and specifications, business studies, legal aspects, pilot tests, road tests, and other technical matters towards the implementation of B50 biodiesel.

Currently, the strength of food and biodiesel lies in Indonesia. He said that this potential should be well managed as Indonesia controls 58% of the world's CPO supply.

As a result, B50 will have economic and political impacts across the board. For example, European countries require 2.6 million KL per year.

As information, the government continues to strive for national energy independence, one of which is by accelerating the implementation of B50 biodiesel development.

Biodiesel can be relied upon as an alternative to replace fossil fuels, whose supply is becoming limited, and biodiesel plays a strategic role due to its positive impact on various aspects, particularly environmental aspects.