Indonesian Political, Business & Finance News

B50 Biodiesel Officially Launched, Now Available at Petrol Stations in These Regions

| Source: CNBC Translated from Indonesian | Energy
B50 Biodiesel Officially Launched, Now Available at Petrol Stations in These Regions
Image: CNBC

President Prabowo Subianto officially launched the B50 biodiesel fuel, a blend containing 50 per cent palm oil, on Thursday (09/07/2026) at a Pertamina petrol station located at KM 57 Rest Area on the Jakarta-Cikampek Toll Road in Karawang, West Java. This launch marks an increase in the utilisation of biodiesel from Fatty Acid Methyl Ester (FAME) to 50 per cent, up from the previous 40 per cent (B40) mandate that has been in effect since early 2025. The B50 product has already been distributed to more than half of PT Pertamina (Persero)‘s petrol station network across Java, Sumatra, and parts of Sulawesi. Eniya Listiani Dewi, Director General of New, Renewable Energy and Energy Conservation at the Ministry of Energy and Mineral Resources, explained that the distribution of B50 will continue to be expanded gradually to various points throughout Indonesia. Pertamina has reportedly provided a report on the readiness of the fuel stock to meet public needs. ’Fifty-seven per cent of Pertamina’s petrol stations already have it. Java, Sumatra, and parts of Sulawesi are covered, so it is starting to spread. Pertamina reported earlier that 57 per cent has been distributed,’ she stated. The government is providing a three-month transition period until 30 September 2026 for fuel distributors to deplete remaining B40 stocks before fully switching to the B50 blend. This adjustment was granted because each company requires different durations for tank cleaning and stock depletion at their storage facilities. ‘How many months does Pertamina need to finish its B40 stock? The answer is two months. And for the other fuel distributors, there are 34 blending business entities that need three months. That is why the Ministerial Decree includes a transition period,’ she added. The government has set the allocation volume for Fatty Acid Methyl Ester (FAME) this year in the range of 16.7 million to 18 million kilolitres. This quota is adjusted to the production capacity of domestic FAME producers and national consumption. ‘It has indeed increased. We have confirmed that 16.7 million kilolitres is definite. That is the minimum. I want to push for more because there is time for them to invest. The total installed capacity of FAME factories is 22 million kilolitres. Currently, they can deliver a total of 16.7 million kilolitres of FAME,’ she concluded. Minister of Energy and Mineral Resources Bahlil Lahadalia asserted that the implementation of the mandatory B50 biodiesel programme will stop Indonesia’s diesel imports this year. He noted that national diesel consumption reaches 38 to 40 million kilolitres per year. ‘Initially, we still imported around 3 to 4 million kilolitres per year. With the implementation of B50, we will no longer import diesel, this is the first time,’ Bahlil stated. He explained that this achievement was not easy, as typically increasing the biodiesel blend requires up to ten years with a three-year trial phase. ‘But the President’s order was to find a way to implement B50 by 2026. We interpret this not just as a technical matter, but as a matter of national sovereignty and self-sufficiency in our own energy,’ he stressed. The Ministry of Energy and Mineral Resources recorded that there are currently 6,412 Pertamina petrol stations distributing biodiesel blend fuel. Of these, 57.6 per cent, or 3,696 stations, are already distributing B50, while the remaining 2,716 stations are still distributing B40. There are also 35 B50 distribution terminals nationwide, with 80 terminals in the process of transitioning from B40 to B50. The ministry calculates that the implementation of B50 will result in foreign exchange savings of up to Rp 170 trillion per year. The added value for the crude palm oil industry is estimated at Rp 23.49 trillion annually, with the absorption of 2.1 million workers. The programme requires between 16.7 and 18 million kilolitres of FAME per year, translating to a need for 15.2 to 16.3 million tonnes of crude palm oil annually, and is projected to reduce emissions by up to 44.46 million tonnes per year.

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