InfoSAWIT, DEPOK — Indonesia’s B40 palm biodiesel program in 2026 is expected to deliver substantial benefits for national energy security, emissions reduction, smallholder welfare, and foreign exchange savings, according to the Indonesian Biofuel Producers Association.

Speaking at the Workshop for Journalists on the 2026 Palm Biodiesel Program, Indonesian Biofuel Producers Association (APROBI) Secretary General Ernest Gunawan said biodiesel demand under B40 is projected at 15.4–15.62 million kilolitres, equivalent to around 98 million barrels or 163 days of Indonesia’s oil production.

The supply will be met by 26 domestic biodiesel producers with a combined installed capacity of 22.02 million kilolitres, which Ernest said remains more than sufficient.

APROBI estimates the program could cut emissions by up to 42 million tonnes of CO₂ equivalent—around 12 percent of the energy sector’s enhanced NDC target by 2030. It is also expected to support 1.9 million upstream jobs and 14,730 off-farm workers.

From a macroeconomic perspective, replacing imported diesel with palm biodiesel could save up to Rp147.5 trillion, or about US$9.33 billion, in foreign exchange.

Despite the positive outlook, Ernest acknowledged challenges related to CPO availability, biodiesel handling and storage quality, logistics, pricing mechanisms, and incentives. APROBI supports further testing toward B50 but stresses the need for comprehensive technical and economic assessments.

“With strong policy alignment and stakeholder collaboration, palm biodiesel will remain the backbone of Indonesia’s energy transition,” Ernest said. (T2)