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Indonesia's new B50 biodiesel program is projected to generate substantial economic and environmental benefits, including savings of up to Rp177 trillion (approximately US$10.9 billion) in foreign exchange, the elimination of diesel imports, and an annual reduction of 44 million metric tons of carbon emissions. Coordinating Minister for Economic Affairs Airlangga Hartarto highlighted these potential gains in a recent statement.
The mandatory fuel blend, a pioneering initiative worldwide, comprises 50 percent palm oil-based biodiesel and 50 percent conventional diesel. Hartarto emphasized that this program is expected to significantly enhance Indonesia's energy security.
"President Prabowo Subianto has launched the B50 program. It proves Indonesia can become self-reliant because B50 will eliminate the need for fuel imports," Minister Hartarto stated on Friday. He further added, "We will save Rp177 trillion in foreign exchange and support our net-zero emissions target by reducing 44 million metric tons of carbon dioxide equivalent."
Hartarto underscored that the B50 program marks a pivotal step in ending Indonesia's reliance on imported diesel, simultaneously establishing the nation as a frontrunner in renewable energy. He proudly noted, "B50 is a world first. No other country has implemented this program."
The biodiesel mandate forms a critical component of the government's broader strategy to bolster energy security amidst escalating global uncertainties. Hartarto stressed the imperative of a robust domestic economy to withstand global challenges, particularly disruptions to supply chains.
Referencing ongoing international complexities, he elaborated, "With geopolitical conflicts in Ukraine and the Strait of Hormuz unresolved, alongside technological disruption from artificial intelligence, Indonesia must strengthen its economic foundations." In response to this global volatility, President Prabowo has directed ministers to prioritize food and energy self-sufficiency.
Beyond the biodiesel mandate, the Indonesian government is also advancing a 100-gigawatt solar power program. This initiative aims to accelerate the country's energy transition, complemented by the development of a downstream electric vehicle battery ecosystem for both transportation and energy storage, as affirmed by Hartarto. "The President is pushing the 100-gigawatt solar program, supported by a downstream electric vehicle battery ecosystem for both transportation and energy storage," he concluded.
Source: Tempo.co