President Officially Launches B50 Biodiesel Mandate Programme
President Prabowo Subianto officially launched the Mandatory B50 Biodiesel Programme at the KM 57 Rest Area in Karawang Regency, West Java, on Thursday (9 July 2026). The President stressed that the launch marks a historic moment in efforts to strengthen national energy independence whilst reducing greenhouse gas emissions.
He expressed pride in the achievement. According to the Head of State, it is time for Indonesia to continue innovating to become a self-reliant nation. Having begun to realise self-sufficiency in the food sector, Indonesia is now moving towards independence in the energy sector.
“By saying Bismillahirrahmanirrahim, today, Thursday, 9 July 2026, I, Prabowo Subianto, President of the Republic of Indonesia, launch the Mandatory B50 Biodiesel Programme,” the President said at the KM 57 Rest Area, Karawang, West Java.
The Mandatory B50 Biodiesel Programme requires a 50 percent blend of biodiesel in diesel fuel. The policy forms part of the government’s strategic agenda to reduce dependence on imported fuel, strengthen the added value of national natural resources, and safeguard Indonesia’s economic and energy resilience.
The government stressed that the implementation of B50 is not merely an increase in the biodiesel blend in diesel, but a major step to strengthen national energy independence, resilience and sovereignty. The programme has a legal basis in Minister of Energy and Mineral Resources Regulation Number 4 of 2025 on the Production and Utilisation of Biofuels, as well as Decision of the Minister of Energy and Mineral Resources Number 257.K/EK.01/MEM.E/2026 concerning the obligation to blend 50 percent biodiesel into diesel oil.
In its implementation, all biofuel business entities, fuel business entities and distributor business entities are required to apply quality standards in accordance with the provisions. Business entities that fail to meet the blending obligation or do not distribute biodiesel according to implementation targets may face administrative sanctions ranging from written warnings and temporary suspension of activities to revocation of business licences.
To support the transition period, the government has given fuel business entities until 30 September 2026 to use up their stocks of B40-specification biodiesel. The Minister of Energy and Mineral Resources will also evaluate the implementation of B50 regularly every three months.
The government stated that the implementation of B50 has been prepared in terms of technical matters, supply, distribution and regulation. Testing was carried out across six sectors that use diesel engines, namely automotive, agricultural tools and machinery, heavy mining equipment, maritime transport, power generation and railways.
The testing involved ministries and agencies, business entities, associations, academics, technology owners and user industries. A number of tests are still ongoing, but preliminary results show that B50 is safe to use and meets performance and compatibility requirements across various diesel engine applications.
The government estimates that the implementation of B50 will have a significant economic and environmental impact. After the B40 programme managed to save Rp 133.3 trillion in foreign exchange in 2025, the application of B50 in 2026 is projected to increase foreign exchange savings to around Rp 170 trillion.
In addition, the implementation of B50 is expected to raise the added value of crude palm oil (CPO) from Rp 20.92 trillion to around Rp 23.49 trillion, absorb around 2.1 million workers, and reduce greenhouse gas emissions by up to approximately 44.46 million tonnes of CO2 in 2026.