Indonesia Assesses CPO Supply for 2027 Biodiesel B60 Rollout

Indonesia is preparing for a biodiesel blend that will require more palm oil and a larger processing industry. The Energy and Mineral Resources Ministry is assessing whether crude palm oil supplies can support the planned B60 policy in 2027.

Deputy Energy Minister Yuliot said President Prabowo Subianto had already indicated that B60 would be implemented next year when the government launched B50. That means officials must consolidate estimates of upstream CPO availability and consider additional planting or measures to raise productivity.

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President Prabowo Subianto, when we launched B50, had already said that B60 would be implemented next year.

The ministry also says the fatty acid methyl ester industry must expand. FAME serves as the main active component in biodiesel and replaces or blends with fossil diesel. Yuliot said the increase would apply to both public-service-obligation and non-PSO mandates.

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We also have to increase the FAME industry.

Eniya Listiani Dewi, director general for new and renewable energy and energy conservation, said officials still need to settle the FAME specifications for B60. Indonesia currently uses the latest FAME in its B50 program, but officials are considering whether to add 10% hydrotreated vegetable oil to the B60 blend.

Eniya said the addition could improve the formulation, but HVO costs 1.5 to two times as much as FAME. Testing has only just begun, and she asked the Palm Oil Plantation Fund Management Agency to study the FAME requirements for B60. The study is targeted for completion in December 2026.

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If 10 percent HVO is added, that is very good. But HVO itself costs 1.5 to two times as much as FAME.

“Indonesia is a pioneer,” Eniya said, adding that officials could not simply ask European researchers for an answer because they had no experience with this specific blend.

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Indonesia is a pioneer. There is no one in Europe I can ask, because nobody knows that.