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Indonesia’s B40 Biodiesel: Distribution Hits 77.8%, Saving Rp 107 Trillion in Foreign Exchange

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Biodiesel B40 Indonesia: Penyaluran Capai 77,8%, Sumbang Penghematan Devisa Rp107 Triliun. Sumber: Kementrian ESDM

The Ministry of Energy and Mineral Resources (ESDM) has reported significant progress in the implementation of the B40 biodiesel mandatory program. As of November 2025, national biodiesel distribution reached 12.11 million kiloliters (kL), realizing 77.8% of the annual target of 15.6 million kL.

Laode Sulaiman, Director General of Oil and Gas (Migas), emphasized that this is part of the government’s commitment to ensuring that bioenergy implementation remains consistent, measurable, and sustainable. The government also continues to refine regulations to optimize program benefits for the industry, the public, and the environment.

Production Capacity and Fantastic Economic Benefits

Eniya Listiani Dewi, Director General of New, Renewable Energy, and Energy Conservation (EBTKE), highlighted Indonesia’s immense potential. Currently, the total national capacity for biodiesel production reaches 22 million kL per year, supported by 28 plants and 24 biofuel business entities spread across Sumatra, Kalimantan, and Java.

The implementation of the B40 program in 2025 has yielded substantial economic and environmental benefits for the country:

  • Foreign Exchange Savings: The program is estimated to have saved approximately Rp 107.2 trillion in foreign exchange as of November 2025 by reducing fossil fuel imports.

  • Added Value: The program successfully increased the added value of Crude Palm Oil (CPO) processing by Rp 16.89 trillion.

  • Social Impact: Labor absorption has reached approximately 1.5 million people, spanning both the on-farm (plantation) and off-farm (processing industry) sectors.

On the environmental front, Indonesia’s commitment to reducing greenhouse gas (GHG) emissions is being realized. By November 2025, the B40 program successfully reduced emissions by 32.2 million tons of $CO_2$ equivalent, making it a primary contributor to national climate targets.

Distribution and Oversight Mechanisms

The B40 program involves 28 fuel business entities as distributors and 24 biofuel business entities as FAME (Fatty Acid Methyl Ester) producers. The total allocation of 15.6 million kL is distributed through 83 delivery points across Indonesia, ensuring logistical availability in the domestic market.

The Minister of Energy and Mineral Resources ensures that oversight of the B40 program continues to be tightened to guarantee implementation remains on track until the end of the year, solidifying Indonesia’s position as a global leader in palm-based biodiesel utilization.