Indonesia to Roll out B50 Biodiesel from July 1: Lahadalia

(ANTARA) – Indonesia will implement B50 biodiesel starting July 1 after nearly six months of trials showed positive results, Energy Minister Bahlil Lahadalia said on Monday (April 6, 2026).

The B50 blend consists of 50 percent crude palm oil (CPO) and 50 percent fossil diesel, and has been tested across multiple sectors, including heavy equipment, ships, trains and trucks.

“It will be finalized soon, and implementation will begin on July 1,” Lahadalia said, adding that the policy is expected to strengthen energy security by reducing reliance on imported fuels and expanding the use of domestic renewable resources.

According to Lahadalia, recent geopolitical tensions in the Middle East highlight the risks faced by countries heavily dependent on imported energy.

“Without diversification, our energy security would be vulnerable. We must rely on our own resources,” he said.

Indonesia currently enforces a B40 mandate, which blends 40 percent palm-based biodiesel with 60 percent petroleum diesel.

The B40 program has reduced diesel imports by 3.3 million kiloliters (kL) and cut carbon emissions by 38.88 million tonnes of CO2 equivalent, the minister said.

Government data show biodiesel utilization reached 14.2 million kL in 2025, or 105.2 percent of the target of 13.5 million kL.

The planned shift to B50 is part of President Prabowo Subianto’s strategy to strengthen resilience against global supply disruptions.

The government estimates the policy could reduce fossil fuel consumption by about 4 million kL annually.

It is also expected to save up to Rp48 trillion (US$2.81 billion) in subsidies, Coordinating Economic Minister Airlangga Hartarto said earlier.

State energy firm PT Pertamina has expressed readiness to support the rollout, including supply and distribution.

Indonesia, the world’s largest palm oil producer, has expanded biodiesel use over the past decade to curb fuel imports and stabilize domestic palm oil demand.

Officials say the B50 rollout will be implemented gradually to ensure supply stability and technical readiness across sectors.

Further evaluations will be conducted during the initial phase to monitor performance and address potential operational challenges. READ MORE

Related articles

Excerpt from Antara: Agriculture Minister Andi Amran Sulaiman stated that 3.5 million tons of crude palm oil have been prepared to support the mandatory Biodiesel 50 (B50) program starting July 1, 2026.

“That is 5.3 million tons of our CPO that we convert into biofuel, this is the President’s directive,” he said regarding the energy resilience goal.

He explained that the policy is part of the B50 program which promotes plant-based energy while ensuring domestic needs are met sustainably.

Indonesia currently controls around 60 percent of the global CPO market, allowing the government to balance exports and domestic use.

CPO exports have increased from 26 million tons to 32 million tons, with 3.5 million tons specifically allocated for the B50 initiative.

Production rose by around six million tons, driven by higher global prices that encouraged farmers to improve productivity.

Sulaiman said the biofuel allocation will not disrupt exports because of the overall increase in national production.

“B50 will be achieved this year, and we are working with Energy and Mineral Resources Minister Bahlil Lahadalia,” he said.

The policy is expected to strengthen energy security and improve farmers’ welfare while boosting economic activity in palm oil-producing regions.

The minister expressed optimism that utilizing CPO for biofuel will strengthen Indonesia’s position as a major player in the global market.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto said the B50 policy will save Rp48 trillion in subsidies.

“As part of efforts toward energy independence and efficiency, the government is implementing the B50 policy,” Hartarto said.

He confirmed that the blend of 50 percent palm oil and 50 percent diesel fuel will take effect on July 1, 2026. READ MORE

Excerpt from Antara: Indonesia will stop importing diesel fuel starting July 1, 2026, in line with the implementation of B50, a biofuel blend consisting of 50 percent diesel and 50 percent crude palm oil (CPO).

“We will no longer import diesel. Per July 1, 2026, we will stop (diesel import), as B50 comes into effect,” Minister of Agriculture Andi Amran Sulaiman stated at the Sepuluh Nopember Institute of Technology (ITS) here on Sunday.

According to him, the move is part of the government’s efforts to strengthen national energy independence by utilizing palm oil as an alternative fuel. READ MORE

Excerpt from Antara: Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia is pushing for the implementation of the B50 biodiesel and E20 bioethanol programs as a key strategy to achieve national energy self-sufficiency.

Accelerating the adoption of biofuels, alongside optimizing oil lifting, is part of the government’s broader efforts to address the global energy crisis triggered by the war in the Middle East.

“First, we must optimize our oil lifting. Second, we need diversification, such as B50, which can reduce diesel imports. Third, we must also push forward the E20 program,” Bahlil said at the Merdeka Palace on Monday (April 27, 2026).

…

Meanwhile, the E20 program, which involves a 20 percent bioethanol blend in gasoline, is targeted for mandatory implementation in 2028 to help reduce gasoline imports.

To support this initiative, the ESDM Ministry plans to begin bioethanol production in 2027 in Merauke, South Papua. The program is linked to the government’s flagship food estate initiative, which aims to develop 500,000 hectares of sugarcane plantations.

In addition to biofuel development, the Indonesian government is also studying the use of compressed natural gas (CNG) as an alternative to reduce reliance on imported liquefied petroleum gas (LPG), which still dominates domestic supply.

“This is still under discussion before we can finalize it,” Bahlil noted.

He explained that national LPG consumption currently stands at around 8.6 million tons per year, while domestic production can only meet approximately 1.6 to 1.7 million tons. As a result, the government must seek viable alternatives.

Despite these challenges, Bahlil assured that national energy reserves remain secure in the short term. READ MORE

Source: Advanced Biofuels USA