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View all search resultsIndonesia rolls out B50 biodiesel mandate, lifting palm oil demand
Indonesia officially launched its latest biodiesel blending mandate on Thursday, requiring a fuel blend of half palm-based diesel and conventional diesel known as B50, as President Prabowo Subianto pushes to cut fuel imports and achieve energy self-sufficiency. The rollout of the new blend will raise domestic palm oil demand.
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President Prabowo Subianto gestures on Thursday as he delivers remarks at the launch of Indonesia's B50 biodiesel program in Karawang, West Java. (Courtesy of/BPMI Setpres)
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ndonesia officially launched its latest biodiesel blending mandate on Thursday, requiring a fuel blend of half palm-based diesel and conventional diesel known as B50, as President Prabowo Subianto pushes to cut fuel imports and achieve energy self-sufficiency.
The new mandate raises the required biodiesel blend to 50 percent from 40 percent, effective July 1.
Fuel distributors have been given a three-month transition period to clear remaining B40 inventories under a regulation issued in June, while biodiesel producers have been instructed to supply higher-quality palm methyl ester (PME) suitable for the new blend.
Read also: RI needs 4 million kiloliters ethanol for E20 biofuel push
“So far, about 56 percent of this year's [B40] allocation has already been absorbed, and once the remaining stocks are depleted over the next two months, the transition will be complete and everyone will be using B50,” Energy and Mineral Resources Minister Bahlil Lahadalia said at the B50 launch ceremony in Karawang, West Java, on Thursday.
The accelerated rollout marked a significant departure from the country’s previous biodiesel road map, Bahlil pointed out, where blending rates typically increased by only 5 to 10 percentage points after around three years of testing.
The faster timetable was “unusually ambitious”, but he said Prabowo had insisted B50 be implemented in 2026, just a year after the B40 mandate took effect.
