Indonesian Political, Business & Finance News

ESDM states B50 to be implemented simultaneously across all sectors from 1 July

| Source: ANTARA_ID Translated from Indonesian | Energy
ESDM states B50 to be implemented simultaneously across all sectors from 1 July
Image: ANTARA_ID

West Bandung, West Java (ANTARA) - The Ministry of Energy and Mineral Resources (ESDM) has stated that the mandatory biodiesel 50 or B50 policy will be implemented simultaneously across all sectors starting 1 July 2026.

“Starting (1 July), it will be for all sectors. All those sectors (will use) B50,” said Director General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of ESDM, Eniya Listiani Dewi, when met at the B50 Road Test Fuel Blending and Filling Station in Lembang, West Bandung Regency, West Java, on Tuesday.

Eniya explained that B50 is still in the road testing phase, targeted to be completed by May 2026 for the automotive sector. The road testing phase, Eniya added, has been ongoing since 9 December 2025 on nine vehicles.

After the road testing, the Ministry of ESDM will inspect the engine conditions.

The road testing and engine inspection for the automotive sector are targeted to be completed by June 2026. Eniya stated that preliminary results from the B50 testing show that the B50 fuel quality meets the required specifications.

In addition to the automotive sector, B50 is also being tested in the agricultural machinery sector, heavy mining equipment, sea transportation, railways, and power generation.

“So, there will be no more B40 (starting 1 July). The infrastructure would face difficulties (if mixed). Therefore, it will start simultaneously across all sectors,” said Eniya.

From an economic perspective, the biodiesel programme has the potential to increase the added value of CPO and save national foreign exchange, with projected savings reaching Rp157.28 trillion in 2026, up from Rp140 trillion.

“Insyaallah, in line with the directives, it can be implemented on 1 July,” she said.

On Tuesday (31/3), Coordinating Minister for the Economy Airlangga Hartarto stated that Indonesia will implement the B50 policy starting 1 July 2026 to save subsidies worth Rp48 trillion.

He mentioned that Pertamina is already prepared to implement the policy.

The B50 implementation policy, according to Airlangga, has the potential to reduce fossil fuel consumption by 4 million kilolitres (KL) in one year.

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