Jakarta: Indonesia has reaffirmed plans to raise the mandatory palm oil content in its biodiesel from 40% to 50% (B50), but the rollout is unlikely to begin in January, a senior energy ministry official said on Monday, reports Reuters.
Eniya Listiani Dewi, director at the ministry, said the government will need up to eight months to complete technical tests on the new blend. “The minister and deputy minister have set a plan for 2026, but the month has not been decided yet,” she told reporters, noting that the timeline will depend on the results of these preparations.
Indonesia, the world’s largest palm oil producer, is expanding the use of the vegetable oil in its energy mix to curb reliance on imported fossil fuels — a policy that often influences global palm oil prices by raising concerns over reduced export availability.
The country has allocated 15.6 million kilolitres of palm-based fuel for the current B40 programme, up from 13.2 million kilolitres in 2023. The B50 mandate is expected to require about 19 million kilolitres annually, according to the biodiesel producers’ association APROBI.
