The B40 Fuel Program Successfully Saved the State Budget by IDR 93.43 Trillion

KatadataOTO – The Ministry of Energy and Mineral Resources (ESDM) revealed that the realization of the 40 percent biodiesel blend program, or B40, has reached 10.57 million KL from January to September 2025.

This achievement has allowed the country to save Rp 93.43 trillion in foreign exchange. This is because Indonesia has succeeded in significantly reducing the volume of fuel imports.

"In addition to saving up to Rp 93.43 trillion in foreign exchange, this mandatory program has been able to absorb more than 1.3 million workers and reduce carbon emissions by up to 28 million tons," explained Bahlil Lahadalia, Minister of ESDM, as reported by Antara (23/10)

Not only saving foreign exchange by reducing diesel imports, Bahlil also stated that the realization of the B40 program was accompanied by an increase in the added value of crude palm oil (CPO) of up to Rp 14.7 trillion.

Photo : Katadata

“This energy transition program opens new job opportunities. From smallholder palm oil plantations to motor vehicle fuel tanks, the biodiesel value chain has become proof that Indonesia is capable of creating a self-sufficient energy ecosystem,” Bahlil affirmed.

It should be noted that the B40 mandatory program is regulated in the Decree of the Minister of ESDM (Energy and Mineral Resources) No. 341.K/EK.01/MEM.E/2024.

The policy regulates the use of biodiesel-type biofuel as a 40 percent blend with diesel fuel, with financing from the palm oil plantation fund management agency.

For your information, B40 is a blend of 40 percent CPO or palm-based biofuel, namely FAME (Fatty Acid Methyl Esters), and 60 percent diesel fuel.

The government has been running the program since January 1, 2025. This move had raised questions regarding which vehicles can use the blended fuel.

Photo : ESDM

However, a number of automotive manufacturers have actually appreciated the government's move. One of them is Toyota, which stated that their products are indeed designed to be able to use biodiesel.

They even emphasized that the use of alternative fuels is part of Toyota's multi-pathway commitment. Therefore, the public does not need to worry about this matter.