B50 Biodiesel to Launch on 1 July 2026: What Will Its Price Be? ESDM's Response
Lembang, CNBC Indonesia - The Ministry of Energy and Mineral Resources (ESDM) is currently preparing the pricing formula for 50% biodiesel fuel or B50. This new B50 fuel product is planned to commence operations on 1 July 2026.
The Director General of New, Renewable Energy, and Energy Conservation (EBTKE) of the Ministry of ESDM, Eniya Listiani Dewi, explained that the determination of B50 prices will still refer to the existing regulations. This is to ensure that price setting remains in accordance with the prevailing rules.
The government will release the benchmark price regularly every month. This step aims to maintain certainty for business actors and the public as consumers before the policy is implemented.
“It follows the formula. If it follows the formula, we release the price every month,” she stated during a visit to the B50 Road Test Fuel Blending and Filling Station in Lembang, as quoted on Friday (23/4/2026).
Regarding the details of the calculation for vegetable fuel components or Fatty Acid Methyl Ester (FAME), her side is coordinating with the Directorate General of Oil and Gas (Ditjen Migas).
“We are calculating with the Dirjen Migas because the projection until December needs clarification, for example, if there are savings, there is ongoing discussion, especially regarding the oil,” she continued.
Based on data from the Ministry of ESDM, the implementation of the B50 programme is projected to provide significant economic benefits to the country through increased value addition to crude palm oil (CPO). From a fiscal perspective, the policy has the potential to save national foreign exchange up to Rp 157.28 trillion in 2026, an increase from the initial B40 programme target of Rp 140 trillion.
“The supply, as I said earlier, we are still calculating, but it should be sufficient; I predict there is enough FAME,” Eniya remarked when asked about the readiness of raw materials for the July implementation.
The government targets the initial implementation of B50 to begin in July 2026, in line with global energy dynamics and efforts to strengthen national energy resilience.
“We are adjusting with the Dirjen Migas. The target for import reduction is calculated at 50%. Currently, biodiesel absorption is around 25% already absorbed,” she concluded.