B50 to Take Effect in July 2026, Government Assures Cooking Oil Stocks Are Safe

JAKARTA, Kompas.com – The government has assured that the implementation of Biodiesel 50 (B50) policy starting 1 July 2026 will not disrupt domestic cooking oil availability. The government assesses that national palm oil production remains sufficient to meet energy needs, domestic consumption, and export markets. Agriculture Minister Andi Amran Sulaiman said that the increase in crude palm oil (CPO) production gives Indonesia room for a surplus even as some supplies will be allocated for palm-based biodiesel programmes. ‘Now, you know our production has risen; this data is from Gapki,’ Amran said in Jakarta on Tuesday (19 May 2026), cited by Antara.

Meanwhile, the volume of exports, which previously ranged around 26 million tonnes, has risen to 32 million tonnes in line with the growth in national palm oil productivity. ‘Earlier 46 million tonnes, 20 million for cooking oil and others, then 26 million tonnes for exports. Now it has risen to 32 million tonnes. If 5 million tonnes are withdrawn, it would still leave a surplus of 1 million for B50,’ Amran explained.

Government estimates that implementing B50 will require an additional around 5 million to 6 million tonnes of CPO. Nevertheless, Amran confirmed that the needs for cooking oil and other domestic consumption, which amount to around 20 million tonnes, remain safe.

The government also believes that implementing B50 can maintain a balance between national energy interests, food security, and the sustainability of Indonesia’s palm exports.

Earlier, Coordinating Minister for Economic Affairs Airlangga Hartarto said the government would implement Biodiesel 50 (B50) starting 1 July 2026. The policy sets a 50 per cent palm oil-based biodiesel blend in diesel fuel. According to Airlangga, the B50 rollout is part of the government’s strategy to boost energy self-sufficiency while reducing reliance on fossil fuels. ‘This starts on 1 July 2026,’ Airlangga said.