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B40 Biodiesel Saves Up to IDR 60 Trillion in Foreign Exchange During H1 2025

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Biodiesel B40 Hemat Devisa Hingga Rp60 Triliun di Semester I 2025. Sumber: Monitor Indonesia

Indonesia’s B40 mandatory biodiesel program has delivered extraordinary results and significant economic impacts. The Ministry of Energy and Mineral Resources (ESDM) reports that the 40% palm-based biofuel blending program (B40) has successfully saved the state US$3.68 billion (approximately IDR 60.37 trillion) in foreign exchange during the first half of 2025. This data was revealed in the ESDM Sector Performance Report for Semester I-2025.

Minister of Energy and Mineral Resources, Bahlil Lahadalia, stated during a press conference on August 11, 2025, that the utilization target for B40 in 2025 is set at 13.5 million kiloliters (kL). As of the first semester, realization has already reached 50.4%, equivalent to 6.8 million kL.

“This is biodiesel, ladies and gentlemen. Our B40 target is 13.5 million kL for 2025, and we have realized 6.8 million kL,” Bahlil said, emphasizing that the program is on track and providing a tangible positive impact on the nation’s finances.

B40: Strong Synergy and Legal Foundation for Success

The successful implementation of B40 is a result of robust synergy between the government, industry, and stakeholders. The program is backed by a solid legal framework, ESDM Ministerial Decree No. 341.K/EK.01/MEM.E/2024, which comprehensively governs B40 utilization.

For 2025, the government has set a total B40 allocation of 15.6 million kL:

  • 7.55 million kL for Public Service Obligation (PSO) services, ensuring affordable clean fuel access for the general public.

  • 8.07 million kL for non-PSO sectors, driving B40 adoption in industrial and commercial industries.

Distribution is supported by an organized network of 24 Biofuel Business Entities and 28 Fuel Business Entities ensuring supply from Sabang to Merauke. This infrastructure protects the economy from volatile global oil price shocks while creating long-term fiscal stability.

From Merauke to the Future of National Energy

The government’s commitment to strengthening the B40 program is also evident in strategic infrastructure projects. Deputy Minister of ESDM, Yuliot Tanjung, revealed that the government is accelerating the construction of a new biodiesel plant in Merauke, South Papua, targeted for operation by 2027.

[Image showing the expansion of biodiesel production facilities across Indonesia, including the new site in Merauke]

Building plants in Eastern Indonesia is part of a long-term vision to ensure sustainable supply and extend economic benefits—such as job creation and regional growth—to all corners of the country. Overall, B40 is more than just a fuel blend; it is a manifestation of national energy resilience based on local renewable resources.