B50 biodiesel program improves farmer welfare, CPO value: minister

hartono · Jul 11, 2026

B50 biodiesel program improves farmer welfare, CPO value: minister

A sample of B50 biodiesel is displayed as part of the palm oil downstreaming program implementation to support national energy security. (ANTARA/HO-Ministry of Agriculture)

Jakarta (ANTARA) - Downstream development of Indonesia's palm oil industry through the B50 biodiesel program will strengthen energy security, increase the value of palm oil products, and improve farmers' welfare, Agriculture Minister Andi Amran Sulaiman said on Friday.

Indonesia's crude palm oil (CPO) production rose 7.3 percent to 51.66 million tons in 2025 from 48.16 million tons a year earlier, he said.

Palm oil exports increased to 32.34 million tons in 2025 from 29.53 million tons a year earlier, while domestic use of palm oil for the mandatory B50 biodiesel program also expanded.

"The B50 program will further strengthen national palm oil downstreaming. Our palm oil production continues to increase, exports also grow, while domestic use of biodiesel is getting bigger," Amran said in his statement on Friday.

To support this massive downstream shift, the Agriculture Ministry is committed to boosting upstream plantation productivity.

The ministry's targeted programs include optimizing cultivation management, distributing superior seed varieties, accelerating smallholder oil palm rejuvenation (PSR) initiatives, and enhancing regional processing infrastructure.

The mandatory B50 program was officially launched by President Prabowo Subianto earlier on Thursday, marking a critical milestone in Indonesia's strategic push to integrate food and energy self-sufficiency.

President Prabowo stressed that the ultimate success of national development must be measured by the rising welfare of the people, particularly farmers who serve as the front guard of national food security.

He said the B50 program demonstrates Indonesia's ability to manage its natural resources independently for the greatest benefit of its people.

According to the President, the sovereignty and survival of a nation are fundamentally dictated by its ability to secure three vital resources: food, energy, and water.

Therefore, achieving food self-sufficiency acts as the indispensable foundation required to accelerate sustainable energy independence, Prabowo stressed.