Official! Bahlil Issues New Regulation on Phasing in Biodiesel-Bioethanol Mixing
Jakarta, CNBC Indonesia - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has officially established a policy for blending petroleum fuels (BBM) with vegetable-based fuels (BBN). This is aimed at strengthening national energy resilience and promoting the energy transition.
The provisions are contained in Ministerial Decree No. 113.K/EK.05/MEM.E/2026 on the Phasing in of the Utilisation of Vegetable-Based Fuels, issued on 3 March 2026.
In the first dictum of the regulation, it states that petroleum fuel business entities are required to blend BBN into BBM for commercial purposes. “Petroleum fuel business entities must blend vegetable-based fuels with petroleum fuels for commercial purposes,” the decree states, quoted on Thursday (9/4/2026).
The blending of vegetable-based fuels with petroleum fuels as referred to in the first dictum is carried out with the following provisions:
biodiesel with specific types of petroleum fuel in the form of diesel oil
biodiesel with general types of petroleum fuel in the form of diesel oil
bioethanol with general types of petroleum fuel in the form of petrol
diesel biohydrocarbon with general types of petroleum fuel in the form of diesel oil with a cetane number specification of 51 at fuel filling stations for land transportation
bioavtur with general types of petroleum fuel in the form of avtur.
Phased Targets until 2030
In this new regulation, the government sets phased implementation targets for BBN blending up to 2030. For biodiesel (diesel), in 2026 it is 40%, and 50% for 2027-2030. Implementation is carried out nationwide.
Meanwhile, for bioethanol, it is 5% in 2026-2027, then 10% for 2028-2030. Initial implementation is in regions such as East Java, DKI Jakarta, West Java, Banten, Yogyakarta, up to Bali and Lampung.
Then for diesel biohydrocarbon in 2027 at 5%, and 10% for 2028-2030. Implementation is carried out nationwide.
For bioavtur (avtur), it starts at 1% phased from 2026-2028, then rises to 5% in 2029-2030. Initial implementation phase at Soekarno-Hatta Airport and I Gusti Ngurah Rai Airport.