B50 Biodiesel Mandate to Roll Out 1 July 2026, Heavy Equipment Trials Show Positive Results

The Ministry of Energy and Mineral Resources (ESDM) has confirmed that the mandatory blend of 50% biodiesel (B50) into fuel oil will proceed as scheduled starting 1 July 2026. The decision is reinforced by trial results across various sectors, particularly heavy equipment, which demonstrated fuel performance in line with expected technical specifications. Director General of New, Renewable Energy and Energy Conservation (EBTKE) Eniya Listiani Dewi explained that the specification for B50 has been agreed upon by all stakeholders. She noted that producers have declared their capability to meet quality parameters that are stricter than previous programmes. “The specification is settled. From the heavy equipment trials, it has been confirmed that the specification has reduced water content to 20 PPM, along with monoglycerides and other parameters. They have agreed to meet that specification, so it is all set,” she stated at the ESDM Ministry office in Jakarta on Wednesday (17/6/2026). The government is currently finalising two Ministerial Decrees (Kepmen) to provide the legal basis for the policy. One regulation will establish the national mandate for B50 usage, while the other will detail the allocation of biodiesel volumes for the second half of this year. “The mandate is in the Kepmen. The ministerial decree for the mandate is ready and just needs the Minister’s signature. I am currently discussing the allocation with the Oil and Gas directorate. The second Kepmen requires a revision from this year’s decree,” she added. The government is also calculating the required biodiesel volume, taking into account projected consumption increases ahead of the Christmas and New Year period. Authorities are ensuring the readiness of Fatty Acid Methyl Ester (FAME) supply so that energy distribution across Indonesia remains stable when the B50 mandate begins. Separately, ESDM Ministry Spokesperson Dwi Anggia stated that road tests for B50 have been conducted since April. The results show that the quality of the B100 fuel used for the B50 blend meets the required specifications. “Performance testing on fuel consumption also showed that vehicles remained stable and fuel consumption was still within the standard range proposed by manufacturers,” Dwi Anggia said at the Government Communication Agency office on Wednesday (17/6/2026). Furthermore, carbon monoxide emission parameters and opacity remained within prescribed limits. She expressed hope that industry players would support the programme’s implementation and the use of biofuel, including the preparation of upstream raw material infrastructure. She also encouraged the public to use this fuel as a tangible contribution to reducing dependence on fossil energy and fuel imports, while supporting emission reductions towards cleaner energy. Dwi Anggia explained that the implementation of B50 is expected to save the country up to Rp 157.28 trillion in foreign exchange, including an increase in the added value of crude palm oil to Rp 24.68 trillion from Rp 20.9 trillion. “Job absorption is also extraordinary. In reality, 1.5 million workers were absorbed in 2025, and with the implementation of B50 in July, the projected job absorption is 2,216,874,” she said.