Mandatory 50% Biodiesel B50 to Take Effect on 1 July 2026: Bahlil's Explanation

The government will implement a mandatory 50% biodiesel blend (B50) policy in diesel starting 1 July 2026. Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that the government has conducted B50 trials for six months. These trials were carried out on various engine types, from heavy equipment and trains to trucks. Thus, the B50 implementation target can be applied starting 1 July 2026. “However, it will soon be finalised, and up to today, the trials have gone quite well, alhamdulillah. And from 1 July, the B50 implementation will begin,” he said when met at the Ministry of ESDM office in Jakarta on Monday (6/4/2026). The implementation of B50 also aligns with the current government’s goal of diversifying domestic energy sources. This is in line with anticipating the uncertain escalation of global geopolitics at present. “Imagine now if we do not diversify, who shall we rely on,” he added. Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto announced this mandatory B50 biodiesel policy in a press conference on Government Policies in Mitigating Risks and Anticipating Global Dynamics, held virtually from South Korea on Tuesday (31/3/2026). This policy is none other than the government’s effort to achieve energy efficiency in anticipation of the impact of the Middle East war. “As part of energy independence and efficiency, the government will implement B50 from 1 July 2026,” Airlangga stated on Tuesday (31/3/2026). “Pertamina is ready for blending and reducing fossil fuels by 4 million kilolitres (kl). This is in one year. In six months, from fossil and biodiesel subsidies, the value (savings) is Rp48 trillion,” he explained. A day before that press conference, President of the Republic of Indonesia Prabowo Subianto assured that the government will increase the blending of Vegetable Fuel Oil (BBN) in the form of palm-based (CPO) biodiesel to 50% (B50) in 2026. This target was conveyed by President Prabowo in front of investors and business actors at the Indonesia-Japan Business Forum in Tokyo, Japan, on Monday (30/3/2026). President Prabowo explained that the increase in the biodiesel portion from palm oil is part of Indonesia’s transformation towards green energy independence. Currently, Indonesia has implemented a 40% biodiesel blend (B40). The B40 mandate has been in effect since early 2025. “This year we will produce diesel fuel from palm oil, and now the portion is increased from 40% to 50%,” Prabowo stated in his speech at the Indonesia-Japan Business Forum in Tokyo, Japan, on Monday (30/3/2026). In addition to biodiesel for diesel substitution, Prabowo also emphasised plans to develop bioethanol as a petrol fuel blend. The government will optimise domestic natural resources such as cassava, sugarcane, and corn as main raw materials. This is mainly due to the uncertainty of the global geopolitical situation, especially conflicts in the Middle East region, which are seen as posing a direct threat to national energy supply security. “For us, this is more urgent because the geopolitical situation in the Middle East provides strategic uncertainty for our energy security. Therefore, we are determined to maximise what we have and secure renewable energy,” Prabowo asserted.