RI to build methanol industries to support B50 biodiesel program

hartono · Jul 9, 2026

RI to build methanol industries to support B50 biodiesel program

Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia gives a statement after the launch of the Mandatory B50 Biodiesel Program in Karawang District, West Java, on Thursday (9/7/2026). (ANTARA/Putu Indah Savitri)

Karawang, Jawa Barat (ANTARA) - Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia announced that the government will build a methanol industry in East Java and East Kalimantan to meet the demand for B50 biodiesel.

"The need for methanol for B50 is around 2.5 million tons per year. The next step is to push for the immediate development of the methanol industry," Lahadalia said after the launch of the Mandatory B50 Biodiesel Program in Karawang District on Thursday.

Lahadalia stated that the government will lay the groundwork for the construction of a methanol industry in Bojonegoro, East Java, in July 2026. The methanol industry to be built in Bojonegoro will use gas as the raw material.

Furthermore, the government will also build a methanol industry in East Kalimantan that uses coal as the raw material.

"The one in East Kalimantan is part of the downstream coal industry," Lahadalia said, adding that he hopes Indonesia can meet its methanol needs for the B50 program.

The B50 program also increases the need for fatty acid methyl ester (FAME) from 14.9 million kiloliters under B40 to 16.7 to 18 million kiloliters under B50, while boosting the need for crude palm oil (CPO) from 13.6 million tons under B40 to 15.2 to 16.3 million tons under B50.

According to Lahadalia, the increased demand for CPO can provide market certainty for palm oil farmers.

"If the price of CPO abroad is low and other countries don't want it, we'll set aside some for the B50 program. This will increase prices for farmers, improve industries, and improve the country's prosperity," he said.

President Prabowo Subianto inaugurated the Mandatory B50 Biodiesel Program in Karawang District, West Java, on Thursday.

The legal basis for the implementation of the Mandatory B50 Biodiesel Program is Ministerial Regulation No. 4 of 2025 concerning the Business and Utilization of Biofuels and Ministerial Decree No. 257.K/EK.01/MEM.E/2026 concerning the Mandatory Blending of Biodiesel with Diesel Fuel at 50 Percent.

The B50 program requires a 50 percent blending of biodiesel with diesel fuel. In its implementation, biofuel businesses, fuel companies, and distributors are required to implement standards and quality standards in accordance with established specifications.