Indonesian Political, Business & Finance News

Pertamina Highlights Potential Surplus of Diesel Fuel Due to B50 Implementation

| | Source: KOMPAS Translated from Indonesian | Energy
Pertamina Highlights Potential Surplus of Diesel Fuel Due to B50 Implementation
Image: KOMPAS

JAKARTA - Vice President of Business Development & Subsidiary at PT Pertamina Patra Niaga, Sigit Setiawan, has revealed that the implementation of B50 biodiesel could potentially result in Indonesia having a surplus stock of diesel.

This is because Pertamina’s refineries are still capable of supplying the national demand for diesel mixed with palm-derived Fatty Acid Methyl Ester (FAME) to produce B40 and, in the future, B50.

“Our refinery capacity is already designed to a certain level. If the output of diesel products is reduced, then other products such as gasoline (petrol), LPG, and avtur (aviation turbine fuel) will also be affected. Currently, our diesel position is balanced, but we still import around 50 per cent of petrol,” Sigit explained, quoted from Kontan on Thursday (30/4/2026).

If oil production at the refineries is reduced to avoid a surplus of diesel supply, petrol production will automatically decrease as well.

As a result, the share of petrol imports would increase, so the most logical approach would be to export the excess domestic diesel, even though the global market has limited capacity to absorb this type of petroleum product (BBM).

Director General of New, Renewable Energy, and Energy Conservation (EBTKE), Eniya Listiani Dewi, explained that the performance of diesel engines when consuming B50 is considered good.

Diesel engines are able to accept it as a petroleum product (BBM).

“If it’s about engine performance, from the technical team’s report earlier, it meets the specifications,” Eniya said, quoted from Kompas.com on Wednesday (22/4/2026).

The maximum water content of B50 is 300 ppm compared to 320 ppm for B40, which is still within the required threshold limits.

Meanwhile, the Indonesian Automotive Industry Association (Gaikindo), which participated in the B50 trials on diesel engines, sees bright prospects ahead.

They hope that the implementation of B50 will become an alternative diesel BBM in Indonesia.

View JSON | Print