Malaysia Quietly Eyes How Indonesia Could Implement Biodiesel Up to B40

Jakarta, CNBC Indonesia - Secretary-General of the Indonesian Motor Vehicle Industry Association (Gaikindo), Kukuh Kumara, said that Indonesia currently has the world’s highest biodiesel blend level. In other words, Indonesia has successfully implemented the mandatory program of blending palm oil 40% into the diesel fuel type, i.e., biodiesel 40% or B40, since January 2025. The success of the B40 mandate has attracted Malaysia’s interest to know how Indonesia managed the biodiesel programme. ‘So they are looking at Indonesia to see how we do it, and we are working with vehicle manufacturers,’ Kumuh said at the CNBC Indonesia Energy Forum, quoted Friday (6/3/2026). However, Kumuh cautioned that increasing biodiesel blends should not be rushed. The rise from B35 to a much higher level must be done gradually so that various technical issues can be identified first. According to Kumuh, a sudden jump in biodiesel blending, for instance from B35 directly to B50, could pose problems, especially if various technical constraints have not been mapped out properly. ‘And especially for commercial diesel-powered vehicles. They operate outside the city, could be in the middle of a forest. It would be unfortunate if they have problems,’ he said.