B50 to Begin in July 2026, Government Targets Rp 48 Trillion Subsidy Savings and Diesel Surplus
JAKARTA, KOMPAS.com - The 50% biodiesel policy (B50), which is a mixture of 50% vegetable fuel based on palm oil (CPO) with 50% diesel, is scheduled to take effect on 1 July 2026.
Coordinating Minister for the Economy Airlangga Hartarto stated that the government is not only targeting subsidy savings from the B50 policy but also opportunities to create a domestic diesel surplus.
This step is considered by Airlangga to be part of a broader strategy to strengthen energy resilience while curbing import dependence.
“In one year, or even in just six months, there will be savings from the use of fossil fuels and also subsidy savings from biodiesel estimated to reach Rp 48 trillion,” said Airlangga at the Palace on Wednesday (8/4/2026).
The government is currently accelerating the energy transition by reducing reliance on fossil fuels.
From a technical readiness perspective, the government has assured that B50 trials are nearly complete.
On the same occasion, the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia mentioned that testing has been conducted for nearly six months across various sectors.
“B50 has been trialled for almost six months on various equipment such as heavy machinery, ships, trains, and trucks. The trials are still ongoing, but they will soon be finalised. Up to today, the results are, alhamdulillah, quite good. Starting 1 July, B50 will be implemented,” said Bahlil.
Interestingly, the implementation of B50 is also projected to transform the domestic energy supply landscape.
The government is optimistic that Indonesia can experience a surplus in diesel supply with the combination of the biodiesel programme and the operation of new refineries.
“I also convey that with the implementation of B50, insyaallah, this year we will experience a diesel surplus. This is good news, especially after the RDMP (Refinery Development Master Plan) in East Kalimantan becomes operational,” he added.
Technically, Bahlil said, field trial results show that B50 has met various important parameters, such as oxidation stability, water content, and FAME standards.
This confirms the readiness for implementation, particularly for non-automotive sectors like mining that have high workloads.
The B50 programme itself is a continuation of previous biodiesel policies, namely B40, which has been implemented nationally since early 2025.
With this increase in blend ratio, Indonesia is further strengthening its position as one of the pioneering countries in large-scale utilisation of vegetable-based fuels.
The General Chairman of Golkar party also mentioned that, in addition to impacting budget savings and import reductions, this policy is expected to boost domestic palm oil absorption and reduce greenhouse gas emissions.