Indonesia to Launch New B50 Fuel, What Will Its Price Be?
Lembang, CNBC Indonesia - The Ministry of Energy and Mineral Resources (ESDM) is refining the pricing formulation for 50% biodiesel fuel, or B50. The programme is scheduled for implementation on 1 July 2026.
Director General of New, Renewable Energy, and Energy Conservation (EBTKE) at the Ministry of ESDM, Eniya Listiani Dewi, explained that the determination of B50 prices will refer to existing regulations. The government will issue the benchmark price routinely every month to maintain certainty for business actors and consumers.
“Following the formula. If it follows the formula, we issue the price every month,” she stated during a visit to the B50 Road Test Blending and Fuelling Station in Lembang, quoted on Wednesday (22/4/2026).
Regarding the details of calculating the vegetable fuel component or Fatty Acid Methyl Ester (FAME), her side is coordinating with the Directorate General of Oil and Gas (Ditjen Migas).
“We are calculating with the Dirjen Migas because the prediction until December needs to be clarified since, for example, if there are savings, there is ongoing discussion about the oil part,” she continued.
Based on ESDM Ministry data, the implementation of the B50 programme is projected to provide significant economic benefits to the country through increased added value of crude palm oil (CPO). From a fiscal perspective, the policy has the potential to save national foreign exchange up to Rp 157.28 trillion in 2026, an increase from the initial B40 programme target of Rp 140 trillion.
“The supply, as I said earlier, we are still calculating, but it should be sufficient; I predict there is enough FAME,” Eniya remarked 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 with the Dirjen Migas. The import reduction target is calculated at 50%. Currently, biodiesel absorption is around 25% already absorbed,” Eniya concluded.