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[BUSINESS] · Indonesia · 2 sources

Indonesia sets July 2026 start for B50 biodiesel blend

Indonesia's Ministry of Energy and Mineral Resources issued Ministerial Decree No. 257/K/EK.01/MEM/E/2026 establishing technical standards for a 50 % biodiesel‑solar mix (B50) that will become mandatory in July 2026. The rule defines at least 24 quality parameters, including density (850–890 kg/m³), kinematic viscosity (2.3–6.0 cSt), cetane number (≥51), flash point (≥130 °C), sulfur (≤10 mg/kg), ester methyl content (≥96.5 %), and oxidative stability (≥900 min). Transition provisions allow existing B40 stocks to be sold until 30 September 2026, after which non‑compliant distributors face warnings, temporary shutdowns or licence revocation.

Industry experts stress that the B50 programme’s success hinges on pricing. Bisman Bhaktiar of the Center for Energy Law Studies argues B50 must be priced below the non‑subsidised Pertadex fuel yet above subsidised solar to attract consumers. Energy Minister Bahlil Lahadalia said the blend will curb solar imports, support the domestic palm‑oil sector and advance Indonesia’s renewable‑energy goals. The government aims to balance market acceptance, fuel quality and import reduction through the new standard.