Indonesia to Launch B40 Biodiesel Program in 2025, Aims to Cut 40 Million Tons of CO2 Annually

Chief Economic Affairs Minister, Airlangga Hartarto, confirmed that the country will officially implement the B40 biodiesel program starting January 1, 2025. The palm oil-based biodiesel is expected to reduce carbon dioxide (CO2) emissions by up to 40 million tons annually.

“We are committed to starting the B40 biodiesel program on January 1, 2025,” said Airlangga during a press conference at the Council of Palm Oil Producing Countries (CPOPC) Ministerial Meeting on Friday.

The Minister also revealed that the government has agreed to increase the national palm oil production quota to meet the B40 program’s needs.

“With the current scheme, the Palm Oil Plantation Fund Management Agency (BPDPKS) is ready to provide funding to cover the price gap between crude palm oil (CPO) and diesel fuel,” he said.

The acceleration of the B40 biodiesel implementation — which blends 40 percent palm oil-based biofuels with diesel — is a key part of the government’s commitment to a greener and more sustainable Indonesia.

Airlangga said that the B40 program aligns with President Prabowo Subianto’s vision for food security, energy independence, and the downstream industrialization of the palm oil industry.

Through the B40 initiative, the government aims to expand the use of palm oil-based biodiesel in various vehicle types. According to Airlangga, the B40 program has the potential to significantly contribute to global efforts to reduce carbon emissions.

“Under the B35 program, we saved around 32 million tons of CO2. With B40, we expect to reduce more than 40 million tons of CO2,” he added.

During the same event, Malaysia’s Plantation and Commodities Minister, Datuk Seri Johari Abdul Ghani, appreciated Indonesia’s B40 program, calling it a concrete contribution to reducing global carbon emissions and supporting the transition to green energy.

“The use of biodiesel made from palm oil must be embraced globally, as it has already significantly reduced carbon emissions,” said Abdul Ghani.

Tags: Indonesia, Crude palm oil, biodiesel, palm oil, CPOPC, B40, carbon emissions