Indonesian Political, Business & Finance News

Biodiesel Distribution Reaches 3.9 Million KL by Mid-April 2026

| Source: CNBC Translated from Indonesian | Energy
Biodiesel Distribution Reaches 3.9 Million KL by Mid-April 2026
Image: CNBC

Lembang, CNBC Indonesia - The Ministry of Energy and Mineral Resources (ESDM) has revealed that biodiesel distribution up to April 2026 has reached 3.9 million kilolitres (KL). This figure represents 25% of the biodiesel allocation set for this year at 15.65 million KL.

Since January to April 2026, biodiesel implementation in Indonesia remains at a 40% (B40) blend mixed with diesel fuel. It is projected that the biodiesel allocation will be adjusted by the end of the year in line with the target to increase implementation to B50 in July 2026.

Director of Bioenergy at the Directorate General of New Renewable Energy and Energy Conservation (EBTKE) of the Ministry of ESDM, Edi Wibowo, explained that this realisation is based on biodiesel absorption in various user sectors during the first four months of the year.

“So the distribution realisation up to 13 April is 3.9 million KL or nearly 25% of the allocation. The allocation is 15.65 (million KL),” Edi stated when met at the B50 Road Test Fuel Blending and Filling Station in Lembang on Tuesday (21/4/2026).

The Ministry of ESDM projects that the total allocation will be readjusted according to production capacity and domestic needs, in line with global energy dynamics and to maintain domestic supply stability.

In addition, the Director General of EBTKE at the Ministry of ESDM, Eniya Listiani Dewi, added that current biodiesel absorption has contributed to reducing diesel imports.

“It’s calculated at 50%. Now, biodiesel absorption is about 25%. 25% has been absorbed. The rest we are still calculating,” Eniya replied when asked about the potential for reducing diesel imports, on the same occasion.

Eniya emphasised that the supply of crude palm oil (CPO) raw materials is currently monitored to be sufficient to support the sustainable implementation of this clean energy policy.

“Because it has always been considered, the Minister of Agriculture has also announced an increase, so if I look at the volume, it is monitored. The supply, as I said earlier, we are continuously calculating but it is sufficient if I predict the FAME is sufficient,” Eniya concluded.

Based on Ministry of ESDM data, the B50 programme implementation targeted to start in July 2026 is projected to save national foreign exchange up to Rp 157.28 trillion. Besides economic aspects, the policy is also expected to create national employment with a target absorption of more than 2.2 million workers.

From an environmental perspective, B50 use is targeted to reduce greenhouse gas emissions by 46.72 million tonnes of CO2 in 2026. As of mid-April 2026, the national biodiesel distribution realisation has reached 3.90 million kilolitres or about 24.9% of the initial annual allocation of 15.65 million kilolitres.

Technically, B50 specifications have been enhanced to maintain engine performance, including limiting water content to a maximum of 300 ppm and monoglycerides to a maximum of 0.47% by mass. Oxidation stability has also been strengthened to a minimum of 900 minutes to ensure fuel quality remains optimal during storage and distribution across various regions.

The government targets all automotive sector trials to be completed by June 2026, while other strategic sectors such as heavy equipment and railways will be finalised gradually until the end of the year. With interim test results showing reliable and safe performance, B50 is ready to strengthen national energy independence.

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