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Indonesia's New B50 Biodiesel Fuel Completes Second Semester Testing This Year

| Source: CNBC Translated from Indonesian | Energy
Indonesia's New B50 Biodiesel Fuel Completes Second Semester Testing This Year
Image: CNBC

Jakarta — Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia has targeted the completion of the mandatory B50 biodiesel programme testing in the second semester of this year. The B50 programme mandates blending 50% palm oil-based biofuel with diesel fuel.

According to Bahlil, the B50 programme is currently undergoing pilot testing before wider implementation is decided. “We are currently conducting B50 testing, and we expect to finish the testing in the second semester. This also has its benefits because we have been blessed by Allah with our palm oil reserves,” Bahlil stated at the Energy and Mineral Resources Ministry in Jakarta on Wednesday, 11 March 2026.

Bahlil assessed that if conflicts in the Middle East persist and impact energy supplies, the government is considering increasing the mandatory biodiesel blend from B50 to B60, or shifting some energy use towards petrol-based fuels. This initiative forms part of the government’s efforts to maximise domestic energy sources and strengthen national energy resilience.

“We are exploring all options by using all our domestic energy sources to strengthen energy resilience,” Bahlil said.

Deputy Energy and Mineral Resources Minister Yuliot Tanjung previously disclosed that the government is preparing plans to implement B50 to reduce dependence on fossil fuels. “We hope that B50 can be implemented in 2026, which means reducing our dependence on fossil fuels,” Yuliot stated in Jakarta on Tuesday, 23 September 2025.

Yuliot assessed that implementing B50 will have positive impacts on clean energy development and the surrounding environment. This also forms part of the government’s plan to achieve net zero emissions. “This will be better in the future and is part of our net zero emissions target,” he said.

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