Saving Rp48 Trillion on Diesel, Government Prepares B50 Implementation
The government is continuing to refine the implementation of the mandatory 50% biodiesel (B50) policy, targeted to commence on 1 July 2026. This programme is believed to curb diesel oil fuel (BBM) consumption while saving state expenditure.
Secretary of the Directorate General of New, Renewable Energy, and Energy Conservation (EBTKE) at the Ministry of Energy and Mineral Resources (ESDM), Harris, stated that the B50 policy forms part of the government’s strategy to strengthen national energy resilience.
“In yesterday’s press conference, it was announced that the B50 policy, or the use of biodiesel with a 50% blend in diesel oil, will be enforced starting from 1 July 2026. This is expected to save 4 million kilolitres of diesel BBM usage, valued at around Rp48 trillion,” he said at the Denpasar 12 Discussion Forum on Wednesday (1/4).
He explained that the government is currently conducting trial or road test phases to ensure technical readiness for implementation in the field, particularly in the transportation sector.
“The preparation for B50 implementation is still in the road trial phase, targeted to be completed at 50,000 kilometres by June,” he clarified.
To date, the trials have exceeded 30,000 kilometres with interim results deemed positive. One of the indicators monitored is the performance of the vehicle’s fuel filtration system.
“From the interim results, one indicator is the fuel filter replacement. The outcome is very positive as the replacement interval has actually become longer,” said Harris.
According to him, these findings bolster the optimism that B50 implementation is technically feasible as per the government’s set timeline.
The surge in global oil prices due to the escalation of Middle East conflicts could serve as the right momentum to accelerate the 50% biodiesel policy or B50 implementation.
Amid fluctuating global energy prices and ongoing pressure from oil fuel imports on the state budget, energy policy is no longer merely a technical matter.
The Ministry of ESDM targets the realisation of mandatory trials for vegetable-based fuel (BBN) biodiesel blending based on palm oil at 50% (B50) in diesel BBM by 2026.
The government will halt diesel imports starting in 2026 through the mandatory B50. This policy strengthens national energy independence.