Indonesian Political, Business & Finance News

Indonesia Successfully Develops New B50 Fuel, Drawing Interest from Japan and Europe

| Source: CNBC Translated from Indonesian | Energy
Indonesia Successfully Develops New B50 Fuel, Drawing Interest from Japan and Europe
Image: CNBC

Indonesia has officially become the first country to implement a specific fuel blend, particularly diesel mixed with 50% biodiesel (B50). This success has triggered interest from several developed nations, including Japan and various European countries, to study the technical schemes and regulations involved.

The Director General of New, Renewable, and Energy Conservation (EBTKE) at the Ministry of Energy and Mineral Resources, Eniya Listiani Dewi, explained that the achievement of the B50 diesel blend marks a historic milestone for Indonesia. She emphasised that Indonesia’s current position has become a global reference for the development of palm oil-based biofuels, as it surpasses the achievements of other nations.

“Various durability tests have been proven by users, and during the B50 road tests, many users participated, including engines from European brands. Therefore, for the first time, Indonesia is conducting these tests, and many are following; even now, other countries are interested in learning from us. There are representatives from Japan, Malaysia, and Europe currently coming to learn from us,” Eniya stated during a Hearing with Commission XII of the Indonesian House of Representatives (DPR RI) in Jakarta on Tuesday.

As of 7 September 2026, total national biodiesel distribution has reached 10.69 million kilolitres (KL). This data includes 7.273 million KL of B40 products in the first semester of 2026, as well as 3.4 million KL of B50 products distributed from July to early September.

“Regarding the implementation of B50, we view this in the context of the inauguration performed by the President. This becomes a historic milestone for our nation as the first in the world to implement B50, starting from 1 July 2026,” she added.

Currently, 90% of the distribution network, or approximately 6,050 petrol station locations across Indonesia, are recorded as having distributed B50 products. The government also ensures that 76 out of 104 fuel terminal delivery points are active in distributing this new energy blend to consumers.

“If we compare it to Malaysia, they had just announced B20 after previously being at B15. In Europe, the FAME (Fatty Acid Methyl Ester) usage is at 7%, and we see an average of 10% in several other countries. This shows that we are a pioneer and are now a global reference,” she explained.

The implementation of B50 is projected to provide national foreign exchange savings of up to Rp 170 trillion in 2026. In addition to fiscal efficiency, the policy is expected to absorb 2.1 million workers and boost the added value of the domestic palm oil industry by up to Rp 20.92 trillion.

“The benefits we can derive from B50 are, first, increasing energy utilisation based on domestic raw materials. This demonstrates our energy resilience and independence,” she concluded.

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