Indonesia Accelerates Biodiesel Adoption to Cut Solar Imports

Significant Reduction in Solar Imports

The Indonesian government, through the Ministry of Energy and Mineral Resources (ESDM), is making significant strides in reducing the country's dependency on solar imports. The implementation of the B40 biodiesel mandate has been instrumental in this effort, resulting in a substantial decrease in solar imports from 8.02 million kiloliters in 2024 to 4.92 million kiloliters in 2025.

Economic Benefits of Biodiesel Policy

The B40 mandate has not only reduced solar imports but has also had a positive impact on the economy. As of September 6, 2025, the implementation of B40 has saved Rp 107.20 trillion in foreign exchange. Additionally, it has contributed Rp 16.89 trillion to the value-added economy from CPO (Crude Palm Oil) and created employment opportunities for approximately 1.5 million people in both on-farm and off-farm sectors.

Future Plans: B50 Biodiesel Implementation

Building on the success of B40, the government is now preparing to implement B50 biodiesel in the second half of 2025. The Director-General of New, Renewable Energy, and Energy Conservation (EBTKE), Eniya Listiani, highlighted that comprehensive preparations are underway. These include technical road tests, studies on the availability of CPO, assessments of supporting infrastructure, and evaluations of the sustainability of funds.

The shift towards higher biodiesel blends is part of Indonesia's broader strategy to reduce its reliance on fossil fuel imports and promote the use of renewable energy sources. The successful implementation of B50 is expected to further decrease solar imports and enhance the country's energy security.