Indonesia plans to implement a 50% palm oil-based biodiesel blend, known as B50, by early 2025 as part of efforts to reduce fuel imports and enhance energy self-sufficiency. The incoming President, Mr. Prabowo Subianto, has expressed optimism about the initiative, which he believes could cut fuel imports by US$20 billion per year. 

"We are at B35 now, and we will accelerate to B40, B50," Mr. Prabowo said, noting that B50 would save Indonesia billions annually by reducing the need for foreign fuel imports.  

Current President Joko Widodo’s administration has already mandated the palm oil industry to prepare for the shift, with tests on the higher blending ratio underway. 

Despite Prabowo's ambitious target, industry experts have expressed concerns about the timeline. The Indonesian Biofuel Producer Association (APROBI) and the country's largest palm oil producers' association, GAPKI, have stated that B50 cannot be implemented by early 2025 due to the need for extensive testing and increased production capacity.  

"Some biodiesel producers may need to install new equipment to meet the new standard, and this would take six months," said Tatang Hernas Soerawidjaja, a biofuel expert at the Bandung Institute of Technology, as quoted by Reuters. He added that implementing B50 by the end of 2025 would be more feasible. 

The planned B50 blend will require an estimated 18 million metric tons of crude palm oil annually, up from the 11 million used for the current B35 blend. However, increased domestic consumption may impact palm oil export volumes, particularly as production growth has lagged behind rising domestic demand.  

Meanwhile, Mr. Prabowo also sees the European Union's (EU) import curbs on Indonesian palm oil as an opportunity. He described the EU’s anticipated restrictions, driven by environmental concerns, as a “blessing in disguise” that would boost Indonesia's energy independence.  

"If you want to ban our palm oil from entering Europe, I say thank you very much. We will use our palm oil for the benefit of our people," Mr. Prabowo stated, as quoted by local media outlet Bisnis. 

The EU’s anti-deforestation regulation, which targets commodities like palm oil, has been criticized by Indonesia and Malaysia as discriminatory. Indonesia has filed a complaint against the EU with the World Trade Organization, claiming the policy undermines the competitiveness of its palm oil exports.