Get Ready! Prabowo to Inaugurate Indonesia's New B50 Fuel Today

President Prabowo Subianto is scheduled to inaugurate the launch of diesel fuel blended with 50% palm oil-based biodiesel (B50) on Thursday (9/7/2026) at Rest Area 57 A on the Jakarta-Cikampek Toll Road in Karawang. The government officially mandated the B50 blend on 1 July 2026.

Head of the Government Communication Agency (Bakom) M. Qodari stated that the implementation of B50 is claimed to strengthen national energy security while reducing dependence on diesel imports. Qodari said the development direction is part of the energy transition roadmap to increase the renewable energy mix, gradually reduce dependence on fossil energy, and support a green economy to achieve the net zero emission target.

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia previously stated that the implementation of B50 could potentially save up to Rp157.28 trillion in foreign exchange by the end of 2026, as diesel imports can be reduced or even halted. Bahlil noted that Indonesia’s oil import needs could drop from around 1 million barrels per day to approximately 700,000 barrels per day. He has also proposed to President Prabowo the development of B70 to B80 blends in the future.

B50 is a diesel fuel consisting of a 50% blend of palm oil-based biodiesel (B100) or Fatty Acid Methyl Ester (FAME) with 50% diesel. This policy is a continuation of the previously implemented B40 programme. The government has several reasons for accelerating the implementation of B50, including reducing diesel imports and saving foreign exchange. Based on ESDM Ministry data, the B50 programme is projected to provide significant economic benefits through increased added value of crude palm oil (CPO).

Minister Bahlil issued Decree of the Minister of Energy and Mineral Resources Number 257.K/EK.01/MEM.E/2026 concerning the Mandatory Blending of Biodiesel with Diesel Fuel at 50% within the Financing Framework by the Plantation Fund Management Agency. The regulation mandates the blending of biodiesel into diesel fuel at 50% and took effect on 1 July 2026. Key points include a minimum 50% blending target for all diesel fuel types, mandatory quality standards for biodiesel, and administrative sanctions for non-compliance, including written warnings and temporary suspension.