Indonesia to halt diesel imports this year ahead of B50 mandate

Energy and Mineral Resources Minister Bahlil Lahadalia has confirmed that Indonesia will stop importing diesel fuel this year, ahead of the mandatory 50 percent biodiesel blend (B50) set to be inaugurated in July 2026. “Tomorrow, in July, we will inaugurate B50, which will save Indonesia’s face from dependence on diesel imports. Starting this year, we will no longer import diesel,” Bahlil stated in Jakarta on Thursday. He explained that Indonesia’s total diesel consumption has now reached 39 million kilolitres, with the government already implementing a B40 mandate. “Of that 39 million kilolitres, B40 means 40 percent uses FAME. FAME is made from CPO mixed with methanol, which then becomes FAME. It is then blended into diesel called B40,” he elaborated. Bahlil further noted that the B50 policy is expected to maintain the price of palm oil fresh fruit bunches at the farmer level while simultaneously reducing fuel imports. “Palm oil farmers’ prices are currently falling. To ensure the market and secure good prices for our palm oil farmers, downstreaming for domestic consumption is being carried out,” he said. He also estimated that the government would be able to meet domestic needs of up to 300,000 barrels per day once the B50 mandate takes effect. “So with this B50, 50 percent of diesel consumption, which is roughly 300,000 barrels per day, can be covered,” Bahlil explained. “This means that of our crude imports of 1 million barrels per day, only about 700,000 barrels per day will remain, because 300,000 barrels are converted with B50,” he added. Meanwhile, technical testing of B50 for the automotive sector began on 2 December 2025 and is targeted for completion by June 2026. The government is also conducting technical tests on agricultural machinery and mining equipment, which are expected to be completed in the second half of 2026. Testing for the railway and power generation sectors is also underway, though the process has not yet been fully completed.