New B50 Biodiesel Fuel to Launch on 1 July, Here Are the Specifications
The government, via the Ministry of Energy and Mineral Resources (ESDM), plans to target the mandatory implementation of a 50% biodiesel blend (B50) in fuel starting 1 July.
Minister of Energy and Mineral Resources, Bahlil Lahadalia, revealed that he will hold a meeting with the trial team over the next week to ensure the readiness of the B50 implementation.
“B50 is scheduled to be implemented on 1 July 2026. In about a week, I will hold a meeting with the trial team. We are still continuing our testing,” said Bahlil on Monday (15/06/2026).
According to the results, B50 has shown positive progress, with final-stage trials currently underway to assess the readiness of the plan. So far, approximately 80-90% of the testing parameters have yielded good results.
“About 80-90% of the test results are, thankfully, good. In fact, the water content in B50 is better compared to B40. However, we will announce the final results after the final evaluation meeting,” he added.
Previously, the Director General of New, Renewable, and Energy Conservation (EBTKE) at the Ministry of ESDM, Eniya Listiani Dewi, explained that the government is currently finalising regulations so that implementation can occur simultaneously across various sectors this coming July.
“With this 50% increase, the projected foreign exchange savings through December 2026 could reach Rp 157.28 trillion, and the added value of CPO (Crude Palm Oil) is also expected to rise by Rp 24.68 trillion,” she stated during a Hearing Meeting (RDP) with Commission XII of the Indonesian House of Representatives (DPR RI) in Jakarta on Thursday (04/06/2026).
Meanwhile, the government noted an increase in distribution targets alongside the transition from the B40 programme to B50. In 2026, the allocation is set to increase from 15.64 million kilolitres (KL) to 17.60 million kilolitres (KL) with the new policy implementation starting in early July.
The government explained that the incentive distribution scheme remains the same as before. Incentives will only be provided for the Public Service Obligation (PSO) sector, while the non-PSO sector will follow market pricing mechanisms.
“The allocation for PSO and non-PSO will be as previously conducted. Incentives will only be distributed for the PSO sector,” she added.
With the implementation of B50, it is expected to create a social impact by absorbing approximately 2.2 million workers.
From an environmental perspective, the increase in renewable energy is targeted to reduce greenhouse gas emissions by up to 46.72 million tonnes of CO2 throughout 2026.
“We know the benefits of the biodiesel mandate; the 40% biodiesel (B40) has been in place since 2025, resulting in a total realisation of 14.94 million KL in 2025, with a 95.67% absorption rate across both PSO and non-PSO sectors,” she concluded.