The implementation of B40 biodiesel has saved Indonesia 7.73 million USD in foreign exchange and reduced emissions by 38.88 million tons of CO₂ equivalent.

Jakarta (Indonesia Window) — The Indonesian government has recorded the successful implementation of its mandatory biodiesel policy throughout 2025. The rollout of B40 biodiesel has saved the country 130.21 trillion rupiahs (around 7.73 million U.S. dollars) in foreign exchange while significantly reducing imports of diesel fuel.

*1 U.S. dollars = 16,811 rupiahs

Minister of Energy and Mineral Resources Bahlil Lahadalia has said Indonesia’s diesel imports fell sharply from around 8.3 million tons in 2024 to approximately 5 million tons in 2025.

“Our diesel imports in 2024 were still around 8.3 million tons. In 2025, they declined to roughly 5 million tons,” Bahlil told a press conference on the 2025 performance achievements of the Ministry of Energy and Mineral Resources here on Thursday (Jan. 8).

According to data from the ministry, the domestic biodiesel utilization from January to December 2025 reached 14.2 million kiloliters, or 105.2 percent of the Key Performance Indicator (KPI) target of 13.5 million kiloliters. This achievement directly contributed to the sharp decline in volumes of diesel fuel imports.

In addition to reducing imports, the biodiesel policy also delivered substantial economic and environmental benefits. Throughout 2025, the program saved 130.21 trillion rupiahs (around 7.73 million U.S. dollars) in foreign exchange, cut emissions by 38.88 million tons of CO₂ equivalent, and increased the value added of Crude Palm Oil (CPO) processed into biodiesel by 20.43 trillion rupiahs (about 1.2 million U.S. dollars).

These achievements form the basis for the government’s target to eliminate diesel fuel imports entirely by 2026. The plan will be supported by a B50 biodiesel test, scheduled for completion in the first half of 2026, followed by nationwide implementation in the second half pending technical and economic evaluations.

The government is also relying on the operation of the Refinery Development Master Plan (RDMP) project in Indonesia’s Balikpapan city, East Kalimantan province, to significantly boost domestic diesel fuel production capacity.

“If we use B50 and the RDMP in East Kalimantan is inaugurated in the near future, then in 2026 we will no longer import diesel fuel,” Bahlil noted.

Nevertheless, the Indonesian government is still allowing limited imports of high-quality CN51 diesel fuel required by heavy equipment industries, as domestic production capacity for this grade remains under development.

Reporting by Indonesia Window