Official! Starting 1 July 2026, Government Mandates B50 Biodiesel
The government has officially established a mandatory policy for blending vegetable-based fuel (BBN) in the form of 50% biodiesel into diesel starting from 1 July 2026. This policy, referred to as the B50 Biodiesel Mandate, forms part of the government’s strategic efforts to promote national energy independence while enhancing energy efficiency.
Coordinating Minister for the Economy Airlangga Hartarto emphasised that the policy represents a concrete government initiative to reduce dependence on fossil energy.
“As part of efforts towards energy independence and efficiency, the government is implementing the B50 policy, which will take effect from 1 July 2026,” he stated during an online press conference on Tuesday (31/3).
Airlangga explained that in terms of implementation readiness, PT Pertamina is prepared to carry out the blending or mixing process for biodiesel. The policy is estimated to curb fossil fuel usage by up to 4 million kilolitres per year.
Furthermore, he boasted that in the first six months of implementation, the government also anticipates potential savings.
“This is beneficial both in terms of fossil energy consumption and biodiesel subsidies, estimated at Rp48 trillion,” Airlangga said.
To ensure that fuel distribution remains on target, the government will enforce purchase regulations through a barcode system on the MyPertamina application, with a reasonable limit of 50 litres per vehicle. However, this restriction does not apply to public transport vehicles. Further details regarding the policy will be provided by the Minister of Energy and Mineral Resources.
In the same forum, Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia expressed optimism about the impact of the B50 biodiesel mandate on national energy availability. He assessed that the implementation of B50 has the potential to propel Indonesia towards a surplus in diesel fuel supply.
According to him, with the application of B50, Indonesia has the opportunity to experience an excess supply of diesel this year. This condition, he continued, will be further strengthened with the operational start of the Refinery Development Master Plan (RDMP) project in East Kalimantan, which is expected to increase processing capacity and national energy resilience.
“With the implementation of B50, insyaallah this year we will experience a surplus in our diesel,” he concluded.