Official: Bahlil Issues Regulation Mandating 'New B50 Fuel' from 1 July 2026

Minister of Energy and Mineral Resources Bahlil Lahadalia has officially issued Ministerial Decree Number 257.K/EK.01/MEM.E/2026 concerning the Obligation to Blend 50% Biodiesel-Type Biofuel with Diesel Fuel Oil within the Financing Framework by the Plantation Fund Management Agency. This regulation mandates the blending of biofuel (biodiesel) into diesel-type fuel oil at 50 percent, or B50. The B50 mandate comes into effect on 1 July 2026. The regulation was signed by Minister Bahlil on 17 June 2026 and takes effect on 1 July 2026. “This Ministerial Decree comes into effect on 1 July 2026, with the provision that if any errors are found in the future, corrections will be made accordingly in line with statutory regulations,” the regulation states. There are several key points governing the implementation of the B50 blend into diesel fuel. The main points are as follows: First, to accelerate the implementation of the Government’s policy on blending biodiesel-type biofuel with diesel fuel oil, a minimum implementation target of 50 percent is set, applicable to all types of diesel fuel oil. Second, in carrying out the blending, biofuel business entities, distributor business entities, and fuel oil business entities must apply the standards and quality (specifications) for biodiesel as listed in the Appendix, which is an integral part of this Ministerial Decree. Third, the standards and quality (specifications) for biodiesel apply to biofuel intended for blending with diesel fuel oil at 50 percent. Fourth, biofuel business entities, distributor business entities, and fuel oil business entities must maintain the quality of the biodiesel blended in accordance with the specified standards and quality. Fifth, the utilisation of biodiesel as a blend component for certain types of diesel fuel oil is subject to incentive provisions through the financing framework by the Plantation Fund Management Agency, in accordance with the policies of the Plantation Fund Management Steering Committee. Sixth, if a fuel oil business entity fails to fulfil the obligation to blend diesel fuel with biodiesel, or a biofuel business entity fails to fulfil the obligation to distribute biodiesel for blending with diesel fuel oil, according to the minimum implementation target percentage, administrative sanctions will be imposed in the form of a written warning, temporary suspension, and/or revocation of business permits in accordance with statutory regulations. Seventh, biofuel business entities and fuel oil business entities must make the necessary preparations for the utilisation and blending as stipulated. Eighth, the Minister shall evaluate the implementation of the biodiesel blending every three months. Ninth, upon the enactment of this Ministerial Decree: fuel oil business entities that still hold biodiesel inventory for a 40 percent blend may distribute B40 biosolar until 30 September 2026 according to the standards and quality set before this Decree; the Director General of New, Renewable Energy and Energy Conservation Decree Number 148.K/EK.05/DJE/2024 remains valid until the end of the period referred to in the previous point; the provisions regarding the minimum implementation target for biodiesel blending in diesel fuel for 2026 as referred to in Ministerial Decree Number 113.K/EK.05/MEM.E/2026 shall follow the provisions in this Ministerial Decree; and Ministerial Decree Number 341.K/EK.01/MEM.E/2024 concerning the Utilisation of 40% Diesel Fuel Oil within the Financing Framework by the Palm Oil Plantation Fund Management Agency is revoked and declared invalid. Tenth, this Ministerial Decree comes into effect on 1 July 2026, with the provision that if any errors are found in the future, corrections will be made accordingly in line with statutory regulations.