Indonesia is considering reviving its B50 mandatory biodiesel program, a 50% palm oil blend, potentially in the latter half of this year. This move comes as surging crude oil prices, exacerbated by Middle East tensions, prompt a reassessment of the nation's energy strategy.
Deputy energy minister Yuliot Tanjung stated that while no final decision has been made, the government is evaluating two scenarios. The B50 plan was previously shelved due to technical and funding concerns, with a B40 blend remaining the current policy until 2026. However, the escalating conflict in the Middle East has shifted priorities.
The steering committee, comprising various ministries and led by chief economic minister Airlangga Hartarto, is monitoring real-time price movements. Indonesia, the world's largest palm oil producer, faces a delicate balance, as increased domestic biodiesel use can impact global palm oil prices and export availability.
Energy minister Bahlil Lahadalia indicated a potential acceleration of biofuel programs, including B50 and bioethanol blends with gasoline. Finance minister Purbaya Yudhi Sadewa confirmed Indonesia's readiness to increase fuel subsidies to mitigate the impact of higher global oil costs.