Indonesia to Launch New B50 Biodiesel Fuel Soon, Here Are the Trial Results

The Ministry of Energy and Mineral Resources (ESDM) is targeting the mandatory 50% biodiesel programme, a diesel fuel blended with 50% palm oil (B50), to commence on 1 July 2026. Minister of Energy and Mineral Resources Bahlil Lahadalia explained that a series of B50 trials on various engines and vehicles have shown positive results. The government is currently coordinating to ensure the readiness of distribution infrastructure before the policy is officially implemented widely. “Technically, trials have been carried out by our team from ESDM, led by the Director General of New, Renewable Energy and Energy Conservation, Professor Eniya, and the results are very encouraging. To date, comparing the water content of B40 and B50, B50 has a lower water content,” he said when met at the Coordinating Ministry for Economic Affairs office in Jakarta. Bahlil explained that the government has conducted B50 testing across six sectors to guarantee operational reliability in the field. These sectors include land transportation, railways, sea transport, as well as use in heavy equipment in the mining industry and agricultural machinery. “And this has been tested on various vehicles, including heavy equipment, ships, trains, and several other vehicles. Mining excavators, all agricultural equipment, everything has been done,” Bahlil continued. Through the inauguration of this high-level palm oil blending policy, Indonesia is projected to no longer require diesel supply from the global market. The government is committed to shifting the burden of energy imports to products that can be fully produced independently by domestic industry. “So, God willing, we are very optimistic that the implementation and launch of B50 will take place on 1 July 2026. With that, we will reduce or even stop importing diesel, especially C48,” he stressed. Previously, Director General of New, Renewable Energy and Energy Conservation Eniya Listiani Dewi explained that the specifications for B50 have been agreed upon by all stakeholders. She mentioned that producers have stated their ability to meet quality parameters that are stricter than the previous programme. “The specifications are already settled. For heavy equipment, the spec has been confirmed, with water content down to 20 PPM, and so on for monoglycerides and others. They are already able to meet those specs. So it is all okay,” she clarified. The government is currently finalising two Ministerial Decrees as the legal basis for the policy. One regulation will establish the national mandatory use of B50, while the other will regulate the detailed allocation of biodiesel volume for the second half of this year. “The mandate is in the Ministerial Decree. The mandatory decree is ready, just awaiting the Minister’s signature. Then I am continuing discussions with the Directorate General of Oil and Gas on the allocation. The second decree requires a revision of this year’s decree,” she added. The government is also calculating the required biodiesel volume, taking into account projected consumption increases ahead of the Christmas and New Year period. Authorities continue to ensure the readiness of Fatty Acid Methyl Ester supply so that energy distribution across Indonesia remains stable when the B50 mandate begins. “The volume. Because the Nataru forecast and all estimates are being calculated. Then the readiness of the FAME volume as well. For B50, it is just a matter of going ahead,” she explained.