TEMPO.CO, Jakarta - Coordinating Minister for the Economy Airlangga Hartarto stated that the 50 percent biodiesel (B50) program could save Indonesia up to Rp177 trillion in foreign exchange reserves annually. According to him, the use of B50 would save the country from depending on imported fuel and simultaneously strengthen the national energy resilience.
"With B50, we will no longer import fuel and save Rp177 trillion in foreign exchange, contributing to a net zero emission of 44 million tons of CO2 equivalent," said Airlangga during a KADIN Diplomatic Economic Breakfast event at the Coordinating Ministry for the Economy office in Central Jakarta on Friday, July 10, 2026.
Airlangga mentioned that President Prabowo Subianto's newly launched program demonstrates Indonesia's ability to increase energy self-sufficiency by using palm oil as a biodiesel raw material.
He further emphasized that saving foreign exchange reserves through B50 is crucial amid fluctuations in the rupiah exchange rate and the global energy price hike. Additionally, Indonesia's trade balance showed monthly deficits due to surges in oil import prices.
Nevertheless, Airlangga assessed that Indonesia's economic fundamentals remain intact. He stated that economic growth remains at around 5.05 percent, while inflation is held at approximately 2.5 percent. The government also sees the B50 implementation as one of the strategies to alleviate the energy subsidy burden in the State Budget.
He hopes that the development of biodiesel would help mitigate the impact of global geopolitical uncertainty, including conflicts in the Middle East, on energy supply and prices. Indonesia has been developing the biodiesel program for eight years and is the first country to implement the B50 program.
Read: Prabowo Hails Indonesia as First to Adopt B50 Biodiesel
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