Government to Launch New B50 Biodiesel on 1 July 2026

The government has confirmed that a new type of fuel, B50 biodiesel, will come into effect on 1 July 2026. The assurance was given even though trials are still ongoing and a final evaluation will only be conducted within the next week. Minister of Energy and Mineral Resources Bahlil Lahadalia said the government remains on target to implement B50 according to schedule. Before it is officially applied, the trial results will be evaluated in a meeting with the testing team. “B50 will be implemented according to schedule on 1 July 2026. Perhaps in one more week I will hold a meeting with the trial team. Currently, we are still continuing the trials,” Bahlil said. Although the final evaluation has not yet been carried out, Bahlil noted that interim testing results show positive developments. Around 80-90% of the test parameters have yielded good results. According to him, the quality of B50 in terms of water content is even better compared to the B40 biodiesel currently in use. “Around 80-90% of the trial results, thank God, are good. In fact, its water content compared to B40 is better in B50. However, the final results will be announced after the final evaluation meeting,” he stated. B50 is a mixture of 50% palm oil-based biodiesel and 50% diesel. This composition is an increase from the currently applicable B40. The implementation of B50 is expected to increase domestic palm oil absorption while reducing dependence on imported fossil fuels.