New B50 Biodiesel Fuel to Launch on 1 July, Here Are the Specifications

The government, through the Ministry of Energy and Mineral Resources (ESDM), plans to target the mandatory implementation of 50% biodiesel blending (B50) in diesel fuel starting next 1 July. Minister of Energy and Mineral Resources Bahlil Lahadalia revealed he will hold a meeting with the trial team over the next week to ensure the readiness of the new B50 fuel type’s implementation. “B50, according to schedule, will be implemented on 1 July 2026. Perhaps in one more week I will hold a meeting with the trial team. Currently, we are still continuing trials,” Bahlil said on Monday (15/6/2026). According to trial results, B50 shows positive development, with final-stage trials underway to assess the plan’s readiness. So far, around 80-90% of testing parameters have yielded good results. “Around 80-90% of trial results, alhamdulillah, are good. Even the water content compared to B40 is better in B50. However, the final results will be conveyed after the final evaluation meeting,” he stated. Previously, Director General of New, Renewable Energy and Energy Conservation (Dirjen EBTKE) at the Ministry of ESDM, Eniya Listiani Dewi, explained the government is finalising regulations so implementation can occur simultaneously across various sectors next July. “And for projections until December 2026, with this 50% addition, the foreign exchange savings that can be achieved reach Rp 157.28 trillion, and the increase in added value of CPO also climbs to Rp 24.68 trillion,” she explained during a Hearing Meeting (RDP) with Commission XII of the Indonesian House of Representatives in Jakarta on Thursday (4/6/2026). Meanwhile, the government noted an increase in distribution targets alongside the transition from the B40 to B50 programme. In 2026, the allocation rises from 15.64 million kilolitres (KL) to 17.60 million KL with the new policy taking effect from early next July. The government explained the incentive distribution scheme remains the same as before. Incentive support is only provided for distribution to the Public Service Obligation (PSO) sector, while sectors outside it are released to follow market price mechanisms. “The allocation for PSO and non-PSO will be as previously done. Incentives are channelled only for the PSO sector,” she added. With the implementation of B50, it is hoped to provide a social impact through labour absorption reaching approximately 2.2 million people. On the environmental side, the increase in renewable energy is targeted to suppress greenhouse gas emissions by up to 46.72 million tonnes of CO2 throughout 2026. “The benefits of the biodiesel mandate are already known, as 40% biodiesel was implemented starting in 2025 and resulted in a total realisation of 14.94 million kl in 2025, with 95.67% absorbed for the PSO and non-PSO sectors,” she concluded.