Indonesia plans to launch B50 biodiesel in 2026, January start unlikely
Indonesia confirmed its intention to increase the mandatory palm oil content in biodiesel to 50% next year under the B50 program, but officials said a January rollout is unlikely due to ongoing preparations.
Currently, the country mandates a 40% palm oil blend (B40) in its biodiesel to reduce dependence on imported fossil fuels. Senior energy ministry official Eniya Listiani Dewi told reporters on Monday that several tests for the new 50% blend are needed, which could take up to eight months, News.Az reports, citing Reuters.
“The minister and deputy minister have set a plan for 2026 implementation, but the exact month is yet to be decided,” Dewi said, adding that the timeline will depend on the progress of technical testing.
Indonesia’s increased use of palm oil for energy has previously influenced global vegetable oil prices, as the world's largest palm oil exporter reduces shipments abroad to meet domestic demand.
This year, Indonesia allocated 15.6 million kilolitres of palm oil for the B40 program, up from 13.2 million kilolitres last year. The biodiesel producers association APROBI estimates that B50 could require up to 19 million kilolitres annually.
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