Under Testing, Bahlil Confirms Indonesia's New B50 Fuel to Launch in July 2026
The Ministry of Energy and Mineral Resources (ESDM) has revealed the latest developments regarding the planned implementation of the 50% biodiesel blending mandate (B50) for diesel fuel. The government aims to deploy B50 by July 2026.
Minister of Energy and Mineral Resources Bahlil Lahadalia confirmed that the government is finalising the final stages of technical testing to ensure vehicle engine readiness before B50 is officially launched nationwide. Based on ongoing trials, field tests have shown results consistent with the set targets prior to finalisation.
“It will be implemented as of 1 July 2026. I will likely hold a meeting with the testing team in about a week,” Bahlil stated at the DPR RI Building in Jakarta. According to ESDM Ministry data, the success rate of B50 trials has reached 80-90%. A key finding is that B50 fuel characteristics are superior in maintaining diesel engine operational stability. “We are continuing the trials, and so far, 80 to 90% of the results are good; even the water content in B50 is better compared to B40,” Bahlil added.
Bahlil emphasised that the full details of the technical evaluation will be presented to the public once the final analysis is completed. Previously, the Director General of New, Renewable Energy, and Energy Conservation (EBTKE) at the ESDM Ministry, Eniya Listiani Dewi, stated that the government is finalising regulations to ensure the policy can be implemented simultaneously across various sectors starting next July.
During a hearing with Commission XII of the DPR RI, Eniya projected that the 50% increase could lead to foreign exchange savings of up to Rp 157.28 trillion and increase the added value of CPO by Rp 24.68 trillion by December 2026. The government has noted an increase in distribution targets during the transition from the current B40 programme to B50. The biodiesel allocation for 2026 is set at 15.64 million kilolitres (KL), with the new policy projected to increase this volume to 17.60 million KL by the end of the year.
Regarding the distribution scheme, the government ensured that the incentive structure will remain consistent with current policies. Incentives will only be provided for the Public Service Obligation (PSO) sector, while the non-PSO sector will follow market pricing mechanisms. The implementation of B50 is also projected to have a broad social impact, with an estimated 2.2 million jobs created, and an environmental benefit of reducing greenhouse gas emissions by up to 46.72 million tonnes of CO2 throughout 2026.