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View all search resultsIndonesia’s ambitious B50 biodiesel mandate promises total energy independence, but a volatile mix of surging food costs, environmental degradation, and fiscal strain could turn this historic experiment into a costly economic gamble.
Indonesia officially launched its latest biodiesel blending mandate on Thursday, requiring a fuel blend of half palm-based diesel and ​conventional diesel known as B50, as President Prabowo Subianto pushes to cut fuel imports and achieve energy self-sufficiency. The rollout of the new blend will raise domestic palm oil demand.
As geopolitical tensions expose Indonesia’s dependence on imported fuel, the government is accelerating its B50 biodiesel mandate to strengthen energy security. Yet the policy raises questions about feedstock availability, infrastructure readiness, fiscal costs and its potential impact on the palm oil industry, one of the country’s largest sources of export earnings.
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