JAKARTA \u2013 The Indonesian government has started the implementation of mandatory program of biodiesel 50 percent (B50) since Wednesday (01\/07\/2026), opening a new era of national energy policy that has been implemented for almost two decades.<\/p>\n
The implementation follows the issuance of the Decree of the Minister of Energy and Mineral Resources (ESDM) Number 257.K\/EK.01\/MEM.E\/2026 regarding the obligation to blend biofuel with diesel fuel at a 50% ratio, within the financing framework of the Plantation Fund Management Agency (BPDP).<\/p>\n
“This Ministerial Decree shall come into effect on July 1, 2026, with the proviso that should any errors be discovered subsequently, appropriate corrections shall be made in accordance with statutory regulations,” reads the tenth dictum of the regulation, as reported on Tuesday (30\/06\/2026).<\/p>\n
But unlike the launching of the previous biodiesel programs, the implementation of B50 program will not be made all at once. The government has set a transition period of three months to ensure its blending process and supply chain can proceed in stages before all refuelling stations (SPBU) across Indonesia fully sell the B50 on 01 October 2026.<\/p>\n
Director General of Renewable Energy and Energy Conservation at the ministry of energy and mineral resources (KESDM), Eniya Listiani Dewi said the transition period is also aimed to clear out the remaining stock of\u00a0B40, and give time for producers to conduct adjustments of their operations for the B50 program.<\/p>\n
During the transition period, blending \u00a0process is implemented in stages with specifications getting higher toward the B50. Based on data from the government, there are around 30 companies involving in the blending process, with PT Pertamina and AKR controlling around 70% of national total distribution volume. The volume of distribution will be adjusted to the conditions of each companies.<\/p>\n
The government has also emphasized that all of the companies involving in the B50 program are required to comply with the schedule of implementation. Those failing to fulfil their obligations of blending according to regulations will be subject to administrative sanctions.<\/p>\n
Previously, President Prabowo Subianto announced the launch of B50 as part of a strategy to strengthen national energy security. In his speech at the peak of the 17th National Farmers and Fishermen Week in Gorontalo on June 24, 2026, Prabowo stated that utilizing a blend of 50% diesel and 50% palm oil will reduce Indonesia’s reliance on diesel imports.<\/p>\n
“Thus, we will no longer import diesel from abroad,” said Prabowo.<\/p>\n
The B50 is not a starting point of Indonesia’s biodiesel policy. Its biodiesel program has evolved over nearly two decades through a series of upgrading in the blend ratio within diesel fuel. Each stage was designed to expand the utilization of domestic palm oil while reducing dependence on fossil fuel imports.<\/p>\n
The use of biodiesel as a diesel blend actually began in 2006 with a blend ratio of approximately 5%. Two years later, the government strengthened the legal framework through the Regulation of the Minister of Energy and Mineral Resources (ESDM) Number 32 of 2008 concerning the Supply, Utilization, and Trade of Biofuels. This regulation marked the starting point of Indonesia’s mandatory biodiesel program, targeting a gradual increase in blend ratios across various sectors\u2014ranging from transportation, industry, and power generation to the commercial sector.<\/p>\n
The government subsequently revised the regulations several times to accelerate biodiesel development. The first revision was enacted through ESDM Ministerial Regulation Number 25 of 2013, which raised the targets for biodiesel utilization. Effective September 1, 2013, the mandatory biodiesel blend ratio was increased to 10% (B10).<\/p>\n
A year later, the ESDM Ministry issued Regulation No. 20\/2014, which raised the blending target to 30%. Refinements continued with ESDM Regulation No. 12 of 2015\u2014a regulation that remains the foundation for the national biodiesel mandate to this day. On March 23, 2015, the government officially launched the 15% biodiesel mandate (B15).<\/p>\n
The next phase began in 2016 when Indonesia implemented the B20 mandate widely across the transportation sector. This program served as a stepping stone toward the implementation of B30 in 2020. According to the Ministry of ESDM, Indonesia became the first country to implement a 30% biodiesel blend nationwide.<\/p>\n
In 2022, former Minister of ESDM Arifin Tasrif explained that biodiesel development was driven by the surge in global oil prices during the mid-2000s, coupled with Indonesia’s abundant palm oil production. The Ministry of ESDM reported that the B30 implementation generated an economic value of over US$4 billion in 2021 and reduced emissions by approximately 25 million tons of CO\u2082 equivalent.<\/p>\n
The mandate was subsequently raised to B35, effective February 1, 2023. According to the Downstream Oil and Gas Regulatory Agency (BPH Migas), the implementation of B35 throughout 2023 resulted in foreign exchange savings of approximately IDR 120.54 trillion. During this same period, the government began preparing for the next increase in biodiesel content through various technical tests, distribution adjustments, and ensuring feedstock supply readiness from the national palm oil industry.<\/p>\n
Early in 2025 the government raised the biodiesel blend level to B40 as a subsequent step prior to the implementation of B50. The ESDM Ministry confirmed that all technical testing for B40 was complete and the program was ready to launch early in the year. Minister of ESDM Bahlil Lahadalia also announced that the government has prepared a roadmap for further biodiesel development to B100 over the coming years. B40 serves as a crucial phase for assessing the readiness of the industry, distribution infrastructure, and feedstock supply capacity before Indonesia increases the biodiesel blend to 50% in 2026.<\/p>\n
The biodiesel mandatory program culminates in the implementation of B50, effective July 1, 2026. The target of reaching B50 had actually been announced as early as late 2024; at that time, Minister of ESDM Bahlil Lahadalia stated that Indonesia had the potential to stop diesel fuel imports once the biodiesel blend level reached 50%.<\/p>\n
Regarding feedstock, Minister of Agriculture Andi Amran Sulaiman noted that national crude palm oil (CPO) production stands at approximately 46 million tons annually, while the additional requirement to support B50 is estimated at around 5.3 million tons. These figures underpin the government’s confidence that domestic CPO supplies are sufficient to sustain the nationwide implementation of the B50 program. (*)<\/p>\n
Cnbcindonesia.com. B50 Berlaku Besok 1 Juli 2026, Ini Jejak Panjang Biodiesel Indonesia.<\/em> 30 June 2026. https:\/\/www.cnbcindonesia.com\/research\/20260630125344-128-746817\/b50-berlaku-besok-1-juli-2026-ini-jejak-panjang-biodiesel-indonesia<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" JAKARTA \u2013 The Indonesian government has started the implementation of mandatory program of biodiesel 50 percent (B50) since Wednesday (01\/07\/2026), opening a new era of national energy policy that has been implemented for almost two decades.<\/p>\n","protected":false},"author":1,"featured_media":31579,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"off","neve_meta_content_width":70,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","footnotes":""},"categories":[3708,3709],"tags":[],"class_list":["post-31578","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-publication","category-recent-news"],"yoast_head":"\n