B50 to Begin in July 2026, a New Path to Energy Independence

The government has confirmed that the policy on 50% biodiesel blend fuel (B50) will be implemented starting 1 July 2026, as a step to strengthen national energy resilience and independence. This policy is part of efforts to reduce dependence on energy imports, while also enhancing the utilisation of domestic resources amid global dynamics. “B50 has been undergoing trials for nearly six months on various equipment such as heavy machinery, ships, trains, trucks, and it is still ongoing,” said Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia at the ESDM Ministry on Monday (6/4/2026). He added that the trial results so far have shown quite good performance for immediate widespread implementation. “Up to today, the trials have been quite good, alhamdulillah. And starting 1 July, the implementation of B50 will begin,” he said. “This is why the government has been seeking alternative energy from the start,” he explained. He also touched on the importance of energy diversification in facing the current global conditions. “Back then, you all laughed at me when I proposed B50 and ethanol,” Bahlil stressed. “Imagine now, if we hadn’t diversified, who would we rely on?” Support for this policy was also expressed by Member of the Indonesian House of Representatives Commission XII Yulisman. He assessed that the B50 mandate is a strategic step to strengthen the national energy foundation based on domestic resources. “The B50 mandate is the right and visionary policy. Amid global energy dynamics, Indonesia needs to strengthen its domestic-based energy foundation so as not to be vulnerable to external shocks,” said Yulisman in his statement on Monday (6/4/2026). He explained that increasing the biodiesel blend to 50% has the potential to reduce the need for fossil diesel from around 35-40 million kilolitres (KL) per year to about 17-20 million KL. “This means we are not only curbing imports but also shifting the national energy structure from import-based to domestic production-based,” Yulisman emphasised. In addition, he urged palm oil-producing regions such as Riau, North Sumatra, South Sumatra, Central Kalimantan, and other areas to increase productivity sustainably.