B50 Biodiesel Price Must Be Competitive to Attract Public Interest
The government plans to implement the mandatory 50 percent biodiesel blend, or B50, starting 1 July 2026. However, for the programme to succeed and attract public interest, setting the selling price is considered a crucial factor.
Executive Director of the Centre for Energy and Mining Law Studies (PUSHEP) Bisman Bhaktiar stated that the economic price of B50 must be able to compete in the market. According to him, the ideal price position is above the subsidised diesel price but significantly below the non-subsidised diesel price, such as Pertadex.
“The economic price for 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.
Currently, the price of Pertadex is around Rp24,800 per litre, while subsidised biodiesel is sold at Rp6,800 per litre. Bisman highlighted that the nearly fourfold price gap could potentially trigger misuse of subsidised diesel fuel. Therefore, he proposed that the B50 price be set between these two figures.
He argued that a competitive price is necessary to overcome possible public scepticism towards the new fuel product. “It must be far below, why? Because people’s perception of B50 might also be doubtful,” he said. If the price of B50 can compete, he believes the public will be more inclined to choose this fuel for their vehicles.
On the other hand, the government views the B50 programme as a strategic step to achieve energy self-sufficiency and end dependence on diesel imports. Minister of Energy and Mineral Resources Bahlil Lahadalia confirmed that Indonesia will stop importing diesel fuel starting this year, in line with the implementation of B50 in July 2026.
“Next July we will inaugurate B50, which will save Indonesia’s face from our dependence on diesel imports. Starting this year, we will no longer import diesel,” Bahlil stated in Jakarta on Thursday (25/6).
Bahlil explained that Indonesia’s total diesel consumption currently reaches 39 million kilolitres. With the existing B40 mandate, which uses a 40 percent blend of Fatty Acid Methyl Ester (FAME), a portion of this demand is already met from domestic sources. The increase to a 50 percent blend through B50 is expected to fully cover the national diesel requirement without the need for imports.