Indonesia to Implement B50 Program, Guarantees Availability of Cooking Oil Locally

Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia has ensured that the implementation of Biodiesel 50 percent (B50) program, scheduled for rollout in 2026,  will not affect the supply of cooking oil at domestic market. 

Bahlil said the need for crude palm oil (CPO) as raw material for cooking oil and B50 can be met through several alternatives, which include intensifying oil palm plantations, clearing new land, and reducing palm oil exports by implementing a Domestic Market Obligation (DMO) policy. The DMO is an obligation for companies, particularly in the natural resources sector, to meet domestic market demand before exporting their products.

Cooking oil and biodiesel 50 both require CPO as a raw material. The demand for CPO as a raw material for cooking oil reaches approximately 416,000 tons per month, or approximately 4.99 million tons per year. Meanwhile, the mandatory B50 program requires up to 5.3 million tons of CPO per year.  “If we apply the B50, we just need to reduce our exports to meet domestic demand and apply the DM O,” Bahlil said.