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Palm Oil Export Levy Sufficient to Fund B40 Biodiesel Mandate 



Doc InfoSAWIT/ Deputy II for Food and Agribusiness Coordination at the Coordinating Ministry for Economic Affairs, Dida Gardera.
Palm Oil Export Levy Sufficient to Fund B40 Biodiesel Mandate 

InfoSAWIT, JAKARTA – The Indonesian government remains committed to advancing the mandatory biodiesel program, aiming to implement B40 by 2025 and progressing to B50 and beyond. This initiative is expected to bolster national energy sovereignty while delivering positive impacts across various sectors without disrupting the palm oil supply for food and oleochemical industries. 

Deputy II for Food and Agribusiness Coordination at the Coordinating Ministry for Economic Affairs, Dida Gardera, emphasized this during a national seminar organized by Rumah Sawit Indonesia (RSI) on Monday (18/11) in Jakarta. “Based on joint analysis with BPDPKS, the funds available at BPDPKS are deemed sufficient to support the implementation of the B40 policy in 2025,” Dida stated at the event, which was attended by InfoSAWIT

He further explained that the biodiesel program has been designed not only to achieve energy sovereignty but also to stabilize crude palm oil (CPO) prices, reduce greenhouse gas (GHG) emissions, and improve the trade balance by reducing fuel imports. “Increasing palm oil usage for biodiesel will have broad positive impacts, including foreign exchange savings and environmental protection,” Dida noted. 

Since the establishment of the Palm Oil Plantation Fund Management Agency (BPDPKS) in 2014, the mandatory biodiesel policy has seen significant progress. Starting with B15 and a distribution of 915,000 kiloliters (KL) in 2014, the government has implemented B35 with a distribution of 13.4 million KL in 2024. Dida highlighted that B35 has saved Rp 139.9 trillion in foreign exchange and reduced GHG emissions by 32.6 million tons of CO2. 

For 2025, the government targets the implementation of B40 with a projected distribution volume of 16.08 million KL. Funding of Rp 37.5 trillion will be allocated through BPDPKS. “We are optimistic that the B40 to B50 programs will run smoothly, aligned with the government’s target to achieve Net Zero Emissions by 2060 and accelerate renewable energy adoption,” Dida affirmed. 

The seminar, themed *“Achieving Food, Energy, and Economic Sovereignty Through Palm Oil Plantations Towards Indonesia Gold 2045,”* underscored the strategic role of palm oil in supporting Indonesia’s economic, energy, and environmental transformation toward a sustainable future. (T2)


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