B50 Biodiesel Price Must Be Competitive to Attract Consumers, Says Analyst

The Executive Director of the Centre for Energy and Mining Law Studies (PUSHEP), Bisman Bhaktiar, has stated that the price of B50 biodiesel, set to be implemented on 1 July 2026, must be competitive with conventional diesel to attract public interest. “The economic price of B50, because it is new, must be far below the price of Pertadex and above the price of subsidised diesel,” Bisman said when contacted in Jakarta on Friday. He noted that the current price gap between subsidised and non-subsidised diesel is too wide, nearly fourfold, raising concerns about the misuse of subsidised diesel fuel. The current price of Pertadex is around Rp24,800 per litre, while Biosolar is priced at Rp6,800 per litre. Therefore, when B50 biodiesel is implemented, its proposed price must be adjusted to remain above Rp6,800 per litre but below Pertadex. If the price of B50 biodiesel can be competitive, the public will certainly prefer using B50 for their vehicles. “It must be far below, why? Because people’s perception of B50 may also involve some doubt,” he said. Previously, Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia confirmed that Indonesia will stop importing diesel fuel this year following the 50 percent biodiesel mandate (B50) set for July 2026. “This July we will inaugurate B50, which saves 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 40 percent biodiesel mandate (B40) already implemented by the government. “Of that 39 million kilolitres, previously B40, that is 40 percent using FAME. FAME is made from CPO mixed with methanol, becoming FAME. It is then blended into diesel called B40,” he clarified.