Indonesia's New B50 Fuel Set for Simultaneous Launch on 1 July 2026
Lembang, CNBC Indonesia - The Ministry of Energy and Mineral Resources (ESDM) has confirmed that the implementation of mandatory 50% biodiesel (B50) will commence simultaneously on 1 July 2026.
The Director General of New, Renewable Energy, and Energy Conservation (EBTKE) of the Ministry of ESDM, Eniya Listiani Dewi, explained that preparations for road tests have shown results in line with targets. Accordingly, the government is continuing consolidation to ensure that infrastructure readiness for distribution and raw material supply proceeds in tandem when the policy is executed.
“Insyaallah in accordance with the directives, it can be on 1 July (2026),” she said at the B50 Road Test Blending and Fuelling Station in Lembang on Tuesday (21/4/2026).
“All sectors will adopt B50; there won’t be some on 40 and then 50, as that would complicate the infrastructure. So, it starts simultaneously across all sectors in Indonesia,” she added.
To date, testing has covered a distance of 40,000 kilometres (km) on several automotive vehicle units.
In detail, there are nine vehicles consisting of four passenger vehicles under 3.5 tonnes and five vehicles over 3.5 tonnes. In addition to Japanese manufacturers, B50 testing also involves European brands for large buses and trucks such as Mercedes-Benz and UD Trucks.
“Buses and large trucks, yes, UD Trucks, that’s Mercedes. So, Europe is now participating, and unlike B40 previously, more vehicles are involved this time. Earlier, 9 units for the automotive sector,” Eniya explained.
In addition to road vehicles, testing targets the agricultural sector with various types of two-wheeled tractors, hand tractors, and four-wheeled tractors. The maritime sector is also conducting direct sea trials using ship engines, while the mining sector involves two major companies in Samarinda.
“Then there’s mining; mining involves two companies. So, the one I’ve inspected is at PT HPU Samarinda, and the other is ongoing. Next, we’re moving to maritime vessels; these sea vessels are also undergoing direct testing on the ships themselves for the first time,” she added.
Furthermore, the railway sector will follow with testing on long-distance inter-provincial routes using the Yogyakarta to Jakarta route, while genset testing is conducted for the power generation sector.
The government projects that the final results from this entire series of trials will provide an overview of engine durability against high-level vegetable-based fuels.
“The train one is next week; next week we’ll run it using the route from Yogya to Pasar Senen, from Lempuyangan Station to Pasar Senen, continuously. Then the gensets are there too. One more is the locomotive from Gambir to Pasar Turi,” she concluded.
Based on ESDM Ministry data, the B50 programme implementation targeted for July 2026 is projected to save national foreign exchange up to Rp 157.28 trillion. In addition to economic aspects, the policy is also expected to add to national employment with a target absorption of more than 2.2 million workers.
From an environmental perspective, B50 usage is targeted to reduce greenhouse gas emissions by 46.72 million tons of CO2 in 2026. As of mid-April 2026, the national biodiesel distribution realisation has reached 3.90 million kilolitres, or about 24.9% of the initial annual allocation of 15.65 million kilolitres.
Technically, B50 specifications have been enhanced to maintain engine performance, including reducing water content to a maximum of 300 ppm and monoglycerides to a maximum of 0.47% by mass. Oxidation stability has also been strengthened to a minimum of 900 minutes to ensure fuel quality remains optimal during storage and distribution across various regions.
The government targets the completion of all automotive sector trials by June 2026, while other strategic sectors such as heavy equipment and railways will finish progressively until the end of the year. With interim test results showing reliable and safe performance, B50 is ready to strengthen national energy independence.