Indonesia launches mandatory B50 biodiesel blend

Indonesia’s mandatory B50 biodiesel program took effect on 1 July 2026, requiring 50 % biodiesel in all diesel fuels under Minister of Energy and Mineral Resources Decree No. 257/K/EK.01/MEM.E/2026. The first industrial delivery was made on 2 July by PT Elnusa Petrofin from the Indonesia Bulk Terminal (IBT) Pulau Laut in South Kalimantan, after the terminal received B50‑specification fatty‑acid‑methyl‑ester (FAME) on 1 July.

Pertamina Patra Niaga announced it will supply up to 87.3 million litres of B50 per day nationwide, with all 126 fuel terminals ready for distribution and a three‑month transition period (July‑September) to clear existing B40 stocks. Director General of Renewable Energy Eniya Listiani Dewi said the transition is needed to “use up remaining B40 stocks before full B50 implementation.”

The mandate is expected to boost domestic crude palm oil (CPO) consumption and demand for FAME, with industry estimates of “millions of tons” of additional CPO use. The government projects savings of up to IDR 157.28 trillion (about US$12.8 billion) compared with the previous B40 regime. President Prabowo Subianto is set to inaugurate the program.

“Mandatory B50 is a strategic step to strengthen national energy security,” said Doni Indrawan, CEO of PT Elnusa Petrofin, underscoring the policy’s role in Indonesia’s energy transition and decarbonisation goals.