Indonesian Political, Business & Finance News

56 Percent of Diesel Already Using B50, Says Minister Bahlil

| | Source: REPUBLIKA Translated from Indonesian | Energy
56 Percent of Diesel Already Using B50, Says Minister Bahlil
Image: REPUBLIKA

Energy and Mineral Resources Minister Bahlil Lahadalia stated that 56 percent of national diesel consumption already uses the B50 biodiesel blend, with fuel business entities given until 30 September 2026 to exhaust remaining B40 stocks. “The transition period is just two months. Currently, 56 percent of total diesel already uses B50. Once the two-month transition is over, everything will be B50,” Bahlil said during the launch of the Mandatory B50 Biodiesel Programme at a rest area in Karawang, West Java, on Thursday (9/7/2026). President Prabowo Subianto officiated the programme, which mandates a 50 percent biodiesel blend in diesel fuel. The policy is designed to reduce dependence on imported fuel, increase the added value of palm oil, and bolster national energy security. Implementation follows Energy and Mineral Resources Ministerial Regulation No. 4 of 2025 on the utilisation of biofuel and Ministerial Decree No. 257.K/EK.01/MEM.E/2026 regarding the mandatory 50 percent biodiesel blend. Bahlil added that the ministry will evaluate the programme’s implementation every three months to ensure targets are met. Preparations have included securing raw material supply, production capacity, and blending infrastructure, with testing conducted across six diesel engine sectors: automotive, agricultural machinery, heavy mining equipment, marine transport, power generation, and railways. Preliminary results confirm B50 is safe and meets performance and compatibility standards. The government estimates the B50 mandate will increase foreign exchange savings from Rp133.3 trillion under B40 to approximately Rp170 trillion in 2026, while adding value to the crude palm oil industry, absorbing around 2.1 million workers, and reducing greenhouse gas emissions by roughly 44.46 million tonnes of CO2.

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