Indonesia to Mandate B50 Biodiesel from July 2026 to Slash Fuel Imports

The Indonesian government announced that a 50 % palm‑oil‑based biodiesel blend (B50) will become mandatory for diesel fuel on 1 July 2026. The policy aims to reduce dependence on imported fossil fuels and is projected to save about Rp 157.28 trillion in foreign‑exchange outlays in 2026, up from the Rp 133 trillion saved under the previous B40 programme. Officials say the higher‑blend will also boost the palm‑oil sector’s value‑added output to roughly Rp 24.68 trillion and create an estimated 2.2 million jobs.

Laboratory and field trials on six sectors – road transport, rail, maritime, mining equipment, heavy‑industry machinery and agriculture – have shown positive technical results, including lower water content than B40. The Energy and Mineral Resources Ministry, led by Minister Bahlil Lahadalia, is now coordinating with distributors to ensure infrastructure readiness before the mandate takes effect.