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Indonesia prepares 3.5 million tons of CPO for mandatory B50 program

Makassar, South Sulawesi (ANTARA) – Agriculture Minister Andi Amran Sulaiman stated that 3.5 million tons of crude palm oil have been prepared to support the mandatory Biodiesel 50 (B50) program starting July 1, 2026.”That is 5.3 million tons of our CPO that we convert into biofuel, this is the President's directive,” he said regarding the energy resilience goal.He explained that the policy is part of the B50 program which promotes plant-based energy while ensuring domestic needs are met sustainably.Indonesia currently controls around 60 percent of the global CPO market, allowing the government to balance exports and domestic use.CPO exports have increased from 26 million tons to 32 million tons, with 3.5 million tons specifically allocated for the B50 initiative.Production rose by around six million tons, driven by higher global prices that encouraged farmers to improve productivity.Sulaiman said the biofuel allocation will not disrupt exports because of the overall increase in national production.”B50 will be achieved this year, and we are working with Energy and Mineral Resources Minister Bahlil Lahadalia,” he said.The policy is expected to strengthen energy security and improve farmers’ welfare while boosting economic activity in palm oil-producing regions.The minister expressed optimism that utilizing CPO for biofuel will strengthen Indonesia’s position as a major player in the global market.Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto said the B50 policy will save Rp48 trillion in subsidies.”As part of efforts toward energy independence and efficiency, the government is implementing the B50 policy,” Hartarto said.He confirmed that the blend of 50 percent palm oil and 50 percent diesel fuel will take effect on July 1, 2026.