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, stated that the price of B50 biodiesel, which is scheduled to be implemented from 1 July 2026, must be able to compete with conventional diesel to attract the public.

“The economic price of B50, because this is new, must be significantly below the price of Pertadex and above the price of subsidised diesel,” said Bisman when contacted in Jakarta on Friday.

According to him, the current price gap between subsidised and non-subsidised diesel is too wide, being almost four times the difference. This condition creates concerns regarding the potential misuse of subsidised diesel.

Currently, the price of Pertadex stands at Rp24,800 per litre, while Biosolar is priced at Rp6,800 per litre. Therefore, when B50 is implemented, the proposed price must be adjusted to remain above Rp6,800 per litre but below Pertadex.

“If the price of B50 biodiesel can compete, then the public will certainly prefer using B50 for their vehicles. It must be significantly lower, because there may also be public doubt regarding the perception of B50,” he added.

Previously, the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, confirmed that Indonesia will stop importing diesel fuel this year following the 50 per cent biodiesel mandate (B50) in July 2026.

“Next July, we will officially launch B50; this will save Indonesia’s face from our dependence on diesel imports. Starting this year, we will no longer be importing diesel,” Bahlil stated in Jakarta on Thursday.

He explained that total diesel consumption in Indonesia has currently reached 39 million kilolitres (KL), with the 40 per cent biodiesel mandate (B40) already implemented by the government.

“Of those 39 million kilolitres, B40 uses 40 per cent FAME. FAME is produced from CPO mixed with methanol. This is then mixed with diesel to create B40,” he explained.