Indonesian Political, Business & Finance News

B50 Implementation Poses Technical and Business Hurdles for Road Transport Operators, Organda Speaks Out

| Source: VIVA Translated from Indonesian | Energy
B50 Implementation Poses Technical and Business Hurdles for Road Transport Operators, Organda Speaks Out
Image: VIVA

Road transport operators in Indonesia are not yet prepared for the mandatory implementation of B50 biodiesel, according to the Indonesian Road Transport Association (Organda). Organda Chairman Adrianto Djokosoetono stated that the current vehicle fleet is generally not designed to run on a 50 percent biodiesel blend. He warned that if the government proceeds with B50 and halts the sale of regular diesel, operators will inevitably face higher engine maintenance costs. “We are not ready to use B50 because the vehicles were not prepared for that type of fuel,” Adrianto said on the sidelines of the Organda National Leadership Meeting in Jakarta on Tuesday, 30 June 2026. He acknowledged that transport operators have few alternatives and must adapt to the situation. Organda Secretary General Kurnia Lesani Adnan added that, from a technical standpoint, current engine standards are not compatible with B50. He explained that using the fuel could cause blockages in the engine system and other vehicle components, forcing operators to replace fuel filters more frequently and thereby increasing operational costs compared to using conventional diesel. “We have to improvise operationally, for instance by shortening the lifespan of diesel filters. The consequence is higher operational costs,” he said. The Ministry of Energy and Mineral Resources has previously targeted the B50 rollout to begin on 1 July 2026, without changing the retail price previously applied to B40 biodiesel. The main difference between B40 and B50 lies solely in the increased Fatty Acid Methyl Ester (FAME) composition to 50 percent, so the price is not expected to change.

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