Indonesia to launch B50 biodiesel fuel in July 2026

Indonesia plans to introduce a biodiesel blend containing 50 % fatty acid methyl ester (B50) nationwide on 1 July 2026. The Ministry of Energy and Mineral Resources says the new blend will not affect retail solar diesel prices, using the same pricing formula applied to the existing B40 blend. Director‑General of Oil and Gas Laode Sulaeman noted the price will follow the monthly solar price set by the regulator.

Energy analysts stress that the B50 price must be competitive to encourage adoption. Bisman Bhaktiar of the Center for Energy Law and Mining Studies argued the B50 retail price should stay well below the Pertadex premium (currently around Rp 24,800 per litre) yet remain above subsidised solar (about Rp 6,800 per litre). A three‑month transition period is planned to clear remaining B40 stocks before B50 becomes the standard fuel, aiming to reduce Indonesia’s reliance on imported diesel.

The rollout is part of a broader push for fuel self‑sufficiency, with the government targeting a gradual shift toward higher biodiesel content while keeping consumer prices stable.