Indonesia to Introduce New B50 Fuel on 1 July 2026: What Will the Price Be?
Jakarta, CNBC Indonesia - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has confirmed that the mandatory 50% biodiesel or B50 policy for diesel fuel will be implemented starting 1 July 2026.
Bahlil explained that the government is currently conducting a series of trials to ensure the smooth implementation of B50 without causing technical issues in various transportation and industrial sectors.
“B50 will start implementation on 1 July, and we’ve been conducting continuous tests. Let’s hope it goes according to our schedule; we’re praying for the tests. Now, tests are being done on ships, some heavy equipment, and trains. Hopefully, there are no problems. If it follows the schedule and there are no issues, implementation will be on 1 July,” said Bahlil at the Ministry of ESDM on Monday (11/5/2026).
Nevertheless, Bahlil stated that the government remains open to adjustments if technical issues with engines or fuel performance are found during the testing process.
“But if during the trials there are issues with the engines or if it’s not quite right, we will make adjustments,” said Bahlil.
Regarding the B50 pricing scheme, the Director General of New, Renewable Energy, and Energy Conservation (EBTKE) at the Ministry of ESDM, Eniya Listiani Dewi, explained that the pricing will still refer to the current applicable regulations.
According to her, the government is preparing the pricing formula based on those rules. The benchmark price for B50 will then be released routinely every month. The aim is to provide price certainty for business actors and the public as consumers when the policy is officially enforced.
“It follows the formula. If it follows the formula, we release the price every month,” she stated when met at the B50 Road Test Fuel Blending and Filling Station in Lembang, as quoted on Tuesday (12/5/2026).
Regarding the details of the calculation for Vegetable Fuel Components (BBN) or Fatty Acid Methyl Ester (FAME), her side is coordinating with the Directorate General of Oil and Gas (Ditjen Migas).
“We are calculating with Dirjen Migas because the projection up to December needs clarification, as for example, if there are savings, there’s ongoing discussion about the oil,” she continued.
Based on data from the Ministry of ESDM, the implementation of the B50 programme is projected to provide significant economic benefits for the country through increased value addition to crude palm oil (CPO).
From a fiscal perspective, the policy has the potential to save state foreign exchange up to Rp157.28 trillion in 2026, an increase from the initial B40 programme target of Rp140 trillion.
“The supply, as I said earlier, we are continuously calculating, but it’s sufficient; if I predict, there’s enough FAME,” said Eniya when asked about the readiness of raw materials for the upcoming July implementation.
The government targets the initial implementation of B50 to begin in July 2026 in line with global energy dynamics and efforts to strengthen national energy resilience. “We are adjusting that with Dirjen Migas. The import reduction target is calculated at 50%. Currently, biodiesel absorption is around 25% absorbed,” said Eniya.