Indonesia launches world’s first B50 biodiesel plan

Indonesia has officially launched its ambitious B50 biodiesel plan, raising the blend ratio of palm oil-based biofuel to 50 percent in diesel, a move aimed at boosting national energy self-sufficiency and cutting reliance on imported fuel.

On Thursday, President Prabowo Subianto inaugurated the B50 biodiesel policy in Karawang, West Java, making Indonesia the first country globally to fully implement the standard. While many drivers at filling stations voiced support for the plan, concerns remain over potential diesel price hikes.

"It's half plant-based, half petroleum; I think that's great. It's greener. But the most important thing is diesel prices shouldn't rise any further," said Sofian, fellow truck driver.

Indonesia is the world's largest palm oil producer, and since adopting fuel blending policies in 2008 has rolled out B2.5, B30, and B40 standards. Data from the Ministry of Energy and Mineral Resources suggests palm oil consumption for biodiesel will rise from 15.2 million tons last year to 16.3-17 million tons under B50.

Experts warned the move will drive palm oil prices higher, even beyond Indonesia.

"But I think with this B50, the demand (for palm oil) is just really high, and that increases from 40 percent to 50 percent. In addition, I think with the El Nino coming up, so the heat. Every time there's an El Nino in Indonesia, often the risk of forest fire increases. So that would affect the supply as well. So definitely the prices will go up here, I think internationally, for palm oil," said Dipo Satria Ramli, researcher at Indonesia's Center of Reform on Economics.

Besides higher prices, experts said the B50 rollout brings greater challenges across the supply chain. Noting gaps remain in methanol supply, fuel storage, logistics, and infrastructure in Indonesia, experts said that ongoing investment will be crucial to ensure the plan's continued success.

Indonesia launches world’s first B50 biodiesel plan

Chinese Premier Li Qiang emphasized advancing agricultural modernization and ensuring food security when making investigation in northeast China's Heilongjiang and Jilin provinces from Monday to Wednesday.

In Heilongjiang Province, Li, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, visited a state farm and observed the growth of soybean, corn, and rice crops. He stressed that autumn grain accounts for the bulk of annual output, calling for stepped-up farmland management and policy support to ensure grain harvest.

Visiting an agricultural science park and a rice research institute, Li asked about seed breeding innovation and black soil conservation, highlighting the importance of science and technology in pursuing higher yields and calling for further efforts in seed breeding, advanced machinery, and smart farming.

At a major water conservancy project, Li reviewed construction progress, urging faster completion to improve flood control, irrigation, and ecological benefits while supporting stable, high-yield harvests.

In Jilin Province, Li visited an agricultural cooperative and learned about its operations. He called for developing diverse forms of appropriately scaled agricultural operations and improving services for agriculture to help smallholders connect with modern agriculture.

At a grain processing plant, Li inspected a corn oil production line and called for boosting intensive processing of agricultural products to extend industrial chains and raise value.

Li also visited the Chagan Lake and learned about the ecological fisheries. He called for actively developing modern eco-aquaculture, promoting integrated development of the farming, forestry, livestock, and fishing industries as well as the development of eco-tourism.

Chinese premier stresses agricultural modernization, food security