Indonesia has formally launched its mandatory B50 biodiesel program requiring diesel fuel to contain 50 percent palm-based content, expanding from previous B40 targets to reduce fuel imports and enhance energy security. Proponents project the initiative will process 15.2 to 16.3 million tonnes of crude palm oil (CPO), generate foreign exchange savings of Rp36.7 trillion (US$2.1 billion), and create 2.1 million jobs. However, analysts emphasize that these figures do not fully account for lost export revenue, lifecycle emissions from land-use changes, or the roughly Rp20 trillion annual cost of importing essential methanol inputs.   The B50 mandate presents significant trade-offs across food security, fiscal stability, and environmental sustainability. Tighter CPO export supplies are already driving up global cooking oil prices, raising food inflation risks for lower-income households and domestic food vendors. Furthermore, maintaining price subsidies funded by palm oil export levies risks disincentivizing exports, while stagnant smallholder productivity could spark plantation expansion into forest areas. To prevent economic destabilization, experts advise governing B50 within an integrated energy, food, and land-use framework that prioritizes smallholder replanting and flexible blend adjustments.Source: https://eastasiaforum.org/2026/10/07/indonesia-secures-its-fuel-supply-at-the-cost-of-its-food-and-forests/ (ICE GIACARTA)

Fonte notizia: East Asia Forum, 7 October 2026