Will Indonesia Still Need B50 Biodiesel Development Amid Projected Solar Fuel Surplus?
Indonesia is targeted to become independent from diesel fuel imports by 2026, following the operationalisation of the Refinery Development Master Plan (RDMP) at Balikpapan, which was formally inaugurated by Prabowo on 12 January 2026.
The project is expected to increase the crude oil processing capacity at Balikpapan Refinery from existing levels by 100,000 barrels per day, bringing total capacity to 360,000 barrels per day.
Energy and Mineral Resources Minister Bahlil Lahadalia noted that Indonesia’s annual diesel fuel demand stands at 39.8 million kilolitres. Of this, the B40 biodiesel programme provides 15.9 million kilolitres of Fatty Acid Methyl Ester (FAME) annually, leaving a requirement of 23.9 million kilolitres of pure diesel (B0).
With the additional production from the RDMP Balikpapan project, Indonesia’s current diesel production has reached 26.5 million kilolitres annually. The government now states that Indonesia no longer needs to import diesel with a cetane number (CN) of 48. Imports of diesel with CN 51 are targeted to cease in the second half of 2026.
Even with the expected mandating of 50 per cent biodiesel blending (B50), Indonesia’s diesel production is projected to achieve a surplus. Despite these surplus projections, the government continues to target the mandatory implementation of B50 in the second half of 2026. Currently, field trials are underway for B50 adoption across passenger vehicles, trucks, and heavy machinery.
Beyond reducing diesel imports, B50 implementation is expected to support clean energy development and environmental sustainability objectives. This also forms part of the government’s commitment to achieving net-zero emissions.
Amid diesel surplus projections, questions remain about whether mandatory B50 policy remains necessary and what challenges and efforts must be undertaken by the government, businesses, and industry to facilitate the development and adoption of this biodiesel blend.