Indonesia mandates 50% biodiesel blend in diesel fuel

From 1 July 2026 Indonesia will require all diesel (solar) to contain a 50 % blend of palm‑oil‑derived biodiesel, known as B50. The mandate raises the prior B40 requirement and is part of the government’s energy‑independence drive. Officials say the rule could cut diesel imports by up to 300 000 barrels per day and save around Rp 157 trillion in foreign‑exchange costs in 2026.

The Energy Ministry gave a three‑month transition period for fuel retailers to clear existing B40 stocks. Producers must now supply higher‑quality palm‑oil diesel that meets stricter water‑content and oxidation‑stability standards. Early distribution figures show 4.61 million kilolitres of biodiesel were delivered between January and April 2026.

Automotive experts note that vehicles already running on B40 should experience little performance change under B50, though older engines may need more frequent filter checks. Emissions of carbon monoxide and soot are expected to fall modestly.

State railway operator PT Kereta Api Indonesia (KAI) confirmed that all diesel locomotives and generator sets have been tested and are ready for B50 use. The policy positions Indonesia as a world leader in high‑percentage biodiesel blending, a claim highlighted by parliamentarians and industry officials.