Bahlil Officially Issues Regulations on Biodiesel-Bioethanol Blending, Here is the Content

Jakarta, CNBC Indonesia - The Minister of Energy and Mineral Resources, Bahlil Lahadalia, has officially established a policy on blending Petroleum Fuel (BBM) with Vegetable-Based Fuel (BBN). The policy aims to realise energy self-sufficiency and promote the utilisation of renewable energy.

The regulation is contained in Ministerial Decree No. 113.K/EK.05/MEM.E/2026 on the Phased Utilisation of Vegetable-Based Fuel.

The decree takes effect on the date it was established by Minister of Energy and Mineral Resources Bahlil Lahadalia, namely 3 March 2026.

Through this regulation, the government mandates all petroleum fuel business entities to blend BBN into commercially sold BBM products. This obligation is stated in the first dictum of the ministerial decision.

“Petroleum fuel business entities are required to blend vegetable-based fuel with petroleum fuel for commercial purposes,” states the decree, quoted on Monday (13/4/2026).

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

1. biodiesel with a specific type of petroleum fuel in the form of diesel oil

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

3. bioethanol with general petroleum fuel in the form of petrol

4. diesel biohydrocarbon with general 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 petroleum fuel in the form of avtur.

Phased Blending Targets for BBN

In this new regulation, the government sets implementation targets for BBN blending in phases until 2030. Here are the phased targets:

1. Biodiesel

For specific or subsidised diesel fuel types, the biodiesel blending target is 40% (B40) in 2026, then rising to 50% (B50) in 2027, 2028, 2029, and 2030. The implementation area for biodiesel blending is nationwide.

For general or non-subsidised diesel fuel types, the biodiesel blending target is 40% (B40) in 2026 and 2027, then rising to 50% (B50) in 2028, 2029, and 2030. The implementation area for biodiesel blending is also nationwide.

2. Bioethanol

For general or non-subsidised petrol fuel types, the bioethanol blending target in 2026 is 5% (E5) in six regions in Indonesia, namely East Java, Special Capital Region of Jakarta, West Java, Banten, Central Java, and Special Region of Yogyakarta.

Meanwhile, in 2027, the bioethanol blending target is also 5% (E5) but with one additional implementation area, namely Bali. Thus, in 2027, the E5 implementation target areas cover seven regions in Indonesia.

In 2028, the bioethanol blending target rises to 10% (E10) with the implementation areas remaining in the seven Indonesian regions as per the 2027 target.

For 2029 and 2030, the bioethanol blending target remains at 10% (E10), but with one additional implementation area, namely Lampung. The total E10 implementation areas in 2029 and 2030 reach eight regions.

3. Diesel Biohydrocarbon

For non-subsidised diesel fuel, the diesel biohydrocarbon blending target is 5% in 2026 and 2027, then rising to 10% in 2028, 2029, and 2030, with nationwide implementation.

4. Bioavtur

For bioavtur blending, the target starts at 1% in 2027-2028, then rises to 5% in 2029-2030. The initial implementation phase is at Soekarno-Hatta Airport and I Gusti Ngurah Rai Airport in Bali.