Jakarta. Indonesia plans to end imports of low-grade diesel fuel starting next year as part of its national biofuel expansion program, officials said on Wednesday.

The move aligns with President Prabowo Subianto’s energy independence agenda, which aims to replace imported fossil fuels with locally produced palm oil–based biofuel.

Coordinating Minister for Food Affairs Zulkifli Hasan said the government will raise the biofuel blend in subsidized diesel -- locally known as Solar - from 40 percent to 50 percent, under the B50 program, effectively eliminating the need for imports.

“With B50, we won’t need to import diesel anymore. That’s our target,” Zulkifli said at the Trade Expo Indonesia in Tangerang, Banten.

He added that the effort supports the government’s broader goal of achieving energy self-sufficiency.

“If we want sovereignty, we must achieve food security and then energy independence,” Zulkifli said.

The B50 program -- scheduled to take effect in 2026 -- was previously announced by Energy and Mineral Resources Minister Bahlil Lahadalia at the Investor Daily Summit on October 9.

According to Bahlil, the shift from the current B40 blend to B50 will replace all remaining diesel imports, strengthen the palm oil sector, and reduce the country’s exposure to global price volatility.

“This is a strategic decision and a form of state commitment to energy sovereignty,” Bahlil said. “With B50, we’ll maximize domestic palm oil potential, strengthen the rural economy, and ensure that national energy security remains in our own hands.”

Data from the Energy and Mineral Resources Ministry shows that Indonesia’s biodiesel program saved $40.71 billion in foreign exchange between 2020 and 2025. The B50 rollout is projected to save an additional $10.84 billion within its first year alone.

Under current B40 regulations, Indonesia still imports about 4.9 million kiloliters of diesel -- roughly 10.6 percent of national demand -- but the new program is expected to eliminate this dependence entirely.

To meet that target, the government plans to expand biofuel production capacity from 15.6 million kiloliters in 2025 to 20.1 million kiloliters in 2026.

The palm oil upstream sector and biodiesel processing industry are expected to create 2.5 million plantation jobs and an additional 19,000 manufacturing jobs.

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