JAKARTA – A number of academics responded positively to President Prabowo Subianto’s state of the nation address at the DPR building which touched on energy self-sufficiency through B50 biodiesel. The economist of the State University of Manado (Unima) Robert Winerungan assessed that the cessation of solar imports provided great benefits for the economy.
“Most of our foreign exchange is spent on importing fuel and paying off debts. Now if the fuel is, solar is no longer imported, the Rp170 trillion is a huge foreign exchange savings. So this B50 saves a lot of foreign exchange. Our foreign exchange is no longer drained by fuel imports. There is fuel imports, but it is no longer solar,” said Robert when contacted, Saturday, August 15.
According to Robert, the benefits of foreign exchange savings can be expanded if the created space is used to strengthen Indonesia’s technological capabilities. Technology mastery is considered to increase productivity and reduce production costs, so that national products are more competitive compared to other countries’ products.
He also saw an increase in the use of palm oil as a biodiesel raw material that could create certainty of demand which ultimately helped maintain sales and commodity price stability. Robert also appreciated the positive performance of the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia who could quickly execute the presidential order regarding energy self-sufficiency.
“It’s spectacular. So the point is the big role for BBM that is no longer imported, foreign exchange can be used for technology transfer. Indonesia will be more advanced. So foreign exchange is not drained and if foreign exchange is used for technology transfer, it will make Indonesia more advanced,” he said.
The magnitude of the benefits of B50 for energy resilience is also reflected in the study of energy economics expert from Padjadjaran University (Unpad) Yayan Satyakti. According to Yayan, the palm oil industry has always played a major role in the economy, ranging from absorbing millions of workers, helping reduce poverty in rural areas, to generating foreign exchange through exports and reducing imports.
Yayan assessed that the increase in the use of biodiesel up to B50 needs to be accompanied by strengthening the supporting ecosystem. This is because the increase in the biodiesel portion also increases the need for raw materials. Therefore, increasing the productivity of people’s oil palm plantations, diversifying raw materials, and strengthening financing are important so that B50 can run sustainably.
“Improve the collection and install the safety valve for the mixture now, diversify into waste raw materials while protecting food through the Highest Retail Price instead of export quotas, and immediately start increasing the productivity of people’s plantations, then B50 becomes a victory for energy independence that Indonesia can really afford, both fiscally and environmentally,” said Yayan.
A number of prerequisites highlighted by Yayan have been reflected in the policy of the Ministry of Energy and Mineral Resources (ESDM). Yayan noted that the Minister of Energy and Mineral Resources Decree Number 113.K/EK.05/MEM.E/2026 has regulated the direction of biodiesel blending policy until 2030 by considering three important aspects, namely the readiness of raw materials, financing, and infrastructure.
With this approach, the B50 policy implemented by the Ministry of Energy and Mineral Resources under Minister Bahlil Lahadalia is not only oriented towards increasing the percentage of biodiesel. The readiness of the ecosystem is also a consideration before the mixture is increased. This is important to maintain the sustainability of the program and ensure that the benefits of B50 for energy security can be obtained optimally.
“The gate condition is the clue. The decision itself acknowledges that the mixing path depends on the readiness of financing, which is exactly the variable that the model finds as a binding,” said Yayan.
Yayan’s study also shows that the need for raw materials can be managed through increased productivity and rejuvenation of people’s gardens, so that it does not solely rely on new land opening.
“With adequate financing, raw materials, and infrastructure support, B50 has the opportunity to become an important instrument to strengthen energy resilience while reducing Indonesia’s dependence on imported energy,” said Yayan.
Previously, President Prabowo Subianto said Indonesia had begun to successfully realize energy self-sufficiency. According to Prabowo, one of the achievements was marked by Indonesia’s success in producing B50 biodiesel based on palm oil.
“The promise of energy self-sufficiency is now beginning to be realized by the first time that we have produced diesel with B50 from palm oil,” said Prabowo in a state of the nation address at the DPR building, Senayan, Jakarta, Friday, August 14.
Prabowo explained that the production of B50 biodiesel made Indonesia no longer import gasoline from abroad. According to him, the policy has been in effect since July 1, 2026 and has also saved the country’s foreign exchange in large amounts. “We have managed to save foreign exchange of Rp. 170 trillion, about 9.5 billion American dollars, we no longer have to send it abroad,” said Prabowo.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language.
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