Bahlil Establishes Stages for Biodiesel-Bioethanol Blending, Full Details Here

Jakarta, CNBC Indonesia - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has issued Ministerial Decree Number 113.K/EK.05/MEM.E/2026 on the Phasing of the Utilisation of Vegetable-Based Fuels. This regulation was officially issued on 3 March 2026.

In the first dictum of the regulation, it is stated that petroleum fuel business entities are required to blend vegetable-based fuels (BBN) into petroleum fuels for commercial purposes. “Petroleum fuel business entities must blend vegetable-based fuels with petroleum fuels for commercial purposes,” the decree states, quoted on Thursday (9 April 2026).

The blending of vegetable-based fuels with petroleum fuels as referred to in the first dictum is carried out with the following provisions:

1. biodiesel with specific types of petroleum fuel in the form of diesel oil;

2. biodiesel with general types of petroleum fuel in the form of diesel oil;

3. bioethanol with general types of petroleum fuel in the form of gasoline;

4. diesel biohydrocarbon with general types of petroleum fuel in the form of diesel oil with a cetane number specification of 51 (fifty-one) at fuel filling stations for land transportation;

5. bioavtur with general types of petroleum fuel in the form of avtur.

Phased Targets until 2030

In this new policy, the government has set phased implementation targets for BBN blending up to 2030. For biodiesel (diesel), it is 40% in 2026, and 50% for 2027-2030. Implementation is carried out nationally.

Meanwhile, for bioethanol, it is 5% in 2026-2027, then 10% for 2028-2030. Initial implementation is carried out in regions such as East Java, DKI Jakarta, West Java, Banten, Yogyakarta, Bali, and Lampung.

Then, for diesel biohydrocarbon, it is 5% in 2027, and 10% for 2028-2030. Implementation is carried out nationally.

For bioavtur (avtur), it starts at 1% phased from 2026-2028, then rises to 5% in 2029-2030. Initial implementation phase at Soekarno-Hatta Airport and I Gusti Ngurah Rai Airport.