Indonesia's B50 biodiesel rollout to cut diesel imports from July 2026

Indonesia will implement a mandatory B50 biodiesel blend – 50% palm‑oil based fuel – beginning 1 July 2026. The policy is designed to replace imported C48 diesel, with the government projecting foreign‑exchange savings of up to Rp157.28 trillion (about US$8.8 billion) this year and an added value of Rp24.68 trillion from crude palm oil. Technical trials across automotive, mining, agricultural, railway and power‑generation sectors have been completed or are nearing completion, and officials say the shift will not disrupt cooking‑oil supplies.

Economists note that the mandate could reduce Indonesia’s energy import bill, support the rupiah, create roughly 2.21 million jobs and cut greenhouse‑gas emissions by about 46.7 million tons, bolstering both trade balance and energy security.