Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has announced that nationwide road tests for B50 biodiesel — a blend of 50% palm oil and 50% diesel — will begin on December 3, 2025, reports Tempo English.
The trials will be carried out across a broad range of sectors, including passenger vehicles, ships, agricultural machinery, mining equipment, trains, and power generators. Testing durations will vary depending on the application.
“Some tests will take two months, others four, six, or even eight months,” said Eniya Listiani Dewi, Director General of New and Renewable Energy and Energy Conservation, during the Indonesia Palm Oil Conference 2025 in Nusa Dua, Bali, on Thursday, November 13.
Eniya said the road tests would be conducted transparently, and any problems — such as engine failures at 30,000 or 50,000 kilometers or generator malfunctions — would be publicly disclosed.
The government aims to implement B50 nationwide in the second half of 2026 as part of its plan to strengthen energy security and reduce dependence on imported diesel. Indonesia has gradually raised its biodiesel blend over the past decade, progressing from B10 to B20, B30, and now B40.
ESDM Minister Bahlil Lahadalia said the biodiesel program has helped improve market conditions for palm oil farmers, adding that President Prabowo Subianto has approved the B50 policy. “Using crude palm oil domestically will help raise selling prices for farmers,” he said.
However, experts have urged caution. IPB University professor Bayu Krisnamurti said the jump from B40 to B50 could strain government subsidies, reduce palm oil export volumes, and increase cooking oil prices.
“If not properly managed, the industry’s global competitiveness could weaken,” he said.
Bayu noted that the success of B50 would depend on maintaining a balance between energy independence, export competitiveness, and farmer welfare.
Economic simulations indicate that B50 could save the country up to Rp172 trillion in diesel imports, but potential losses from lower export volumes could reach Rp190 trillion.
