Analyst predicts B50 biodiesel distribution will not be a hurdle

Energy economist from Gadjah Mada University (UGM), Fahmy Radhi, has stated that the distribution of B50 biodiesel, set to be implemented on 1 July 2026, is not expected to pose a problem for the government or Pertamina. “From a distribution standpoint, it is a continuation of B40, so there will be no issues,” Fahmy said when contacted in Jakarta on Monday.

According to him, the B50 biodiesel mandate is a continuation of the previously implemented B40 programme. He noted that the distribution issue is not anticipated to be a hurdle for the government or Pertamina, especially given the lengthy preparation period for the B50 rollout. “This B50 is a continuation of B40, which has already been widely used,” he said.

Fahmy added that B50 biodiesel has also undergone technical testing and been declared viable, including by the Association of Indonesian Automotive Industries (GAIKINDO), particularly for new vehicles. “New vehicles have indeed been designed to use fuel with a B50 blend,” he stated.

Previously, Minister of Energy and Mineral Resources Bahlil Lahadalia confirmed that Indonesia will stop importing diesel fuel this year following the mandatory 50 percent biodiesel blend (B50) set for July 2026. “Next July we will inaugurate B50, which will save Indonesia’s face from dependence on diesel imports. Starting this year, we will no longer import diesel,” Bahlil stated in Jakarta on Thursday (25/6).

He explained that Indonesia’s total diesel consumption has now reached 39 million kilolitres (KL), with the government already implementing the B40 mandate. “Of that 39 million kilolitres, the previous B40 used 40 percent FAME. FAME is made from CPO mixed with methanol, which is then blended into diesel to create B40,” he explained.