The Indonesian government has set out its mandatory B50 biodiesel policy, a fuel of 50% biodiesel and 50% diesel, as one of two strategic initiatives, alongside a 100 GWp solar power programme, to strengthen energy self-sufficiency and reduce dependence on imported fuels amid global oil price dynamics and uncertainty. President Prabowo Subianto launched the B50 programme in Karawang, West Java, on 9 July 2026.
How the B50 Rollout Is Being Checked
Ahead of implementation, the government ran trials across six sectors: automotive, agriculture, mining, maritime transportation, power generation and railways. Regular evaluations are carried out every three months to monitor implementation and identify areas for improvement. The sector list is broader than road transport and includes marine and rail use.
What the Programme Is Expected to Deliver
B50 is expected to reduce diesel imports and save foreign exchange reserves. It also has the potential to stimulate economic activity and create jobs, from the plantation sector to the processing industry. Prabowo described the programme as more than technology use: proof that Indonesia can manage its own natural resources for the benefit of its own people.
The Solar Programme Alongside It
The second initiative is a 100 GWp solar power plant programme, launched by Prabowo in Jembrana, Bali, on 25 August 2026. The government cites existing solar projects that extended electricity service on Rengit Island in the Bangka Belitung Islands from about 12 hours to 24 hours a day, and powered fishers' cold storage and ice-making machines on Sembur Island in the Riau Islands. Development can take forms including floating solar and rooftop panels, with batteries supplying power at night or in cloudy weather.
The Framing
The government presents the two programmes as concrete initiatives as the Prabowo-Gibran administration approaches its second anniversary, aimed at reducing dependence on foreign energy and raising the added value of domestic resources.
Source: Cabinet Secretariat of the Republic of Indonesia, 15 October 2026.
