Indonesia Mandates 50% Biodiesel Blend in Diesel Fuel

Indonesia is accelerating its transition to a 50% biodiesel blend in diesel fuel, known as the B50 Mandate. Minister of Energy and Mineral Resources Bahlil Lahadalia announced that 56% of the nation's diesel consumption already incorporates this blend. The remaining B40 stock has until September 30, 2026, to be depleted, marking the full transition to B50.

President Prabowo Subianto officially launched the program, which mandates the 50% biodiesel mix. This policy is designed to curb the country's dependence on fuel imports, enhance the value of palm oil, and bolster national energy resilience. The implementation is guided by ministerial regulations, including the Ministry of Energy and Mineral Resources Regulation No. 4 of 2025.

The Ministry of Energy and Mineral Resources will conduct quarterly evaluations to ensure the program stays on track. The government has confirmed readiness through the availability of raw materials, production capacity, blending infrastructure, and distribution networks. Initial tests across six sectors, automotive, agriculture, mining, maritime, power generation, and railways, show that B50 is safe and performs well in various diesel engines.

This B50 mandate is expected to significantly increase foreign exchange savings, from an estimated Rp133.3 trillion with the B40 program to around Rp170 trillion in 2026. Furthermore, the policy is projected to add approximately Rp23.49 trillion in value to the crude palm oil industry, support around 2.1 million jobs, and reduce greenhouse gas emissions by an estimated 44.46 million tons of CO2.

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The transition will take two months. From now, 56 percent of total diesel already in use has been consumed. In two months, the B40 will be finished, and during the two-month transition, everyone will be using B50.