Surabaya: Indonesia is set to stop importing low-grade diesel fuel from July 1 as it launches its B50 biodiesel programme, increasing the share of palm oil-based fuel in its energy mix to reduce reliance on imports.
Agriculture Minister Andi Amran Sulaiman said the policy will increase the share of palm oil-based biodiesel in subsidised diesel, known locally as Solar, from 40% to 50%.
The country has been steadily expanding its biofuel use to strengthen energy security and reduce imports. Officials said the shift to B50 marks a major step in that direction, with biodiesel derived from palm oil playing a central role, Jakarta Globe reported.
The government is also working on developing biofuel blends for petrol in collaboration with Perkebunan Nusantara IV, further widening the scope of its biofuel programme.
Earlier, Energy and Mineral Resources Minister Bahlil Lahadalia said Indonesia currently has a surplus of about 1.4 billion litres of subsidised low-grade diesel. The surplus has grown alongside a sharp rise in biodiesel output under the existing B40 policy.
Government data show biodiesel consumption increased to 14.2 billion litres in 2025, up from 9.3 billion litres in 2021. Production has also been supported by a new refinery in Balikpapan, which has boosted domestic diesel supply.
Officials said biodiesel use in 2025 exceeded the government’s target, helping reduce fossil diesel imports by about 3.3 million kilolitres.
Looking ahead, the government plans to phase out imports of mid- and high-octane petrol from 2027 as part of its broader strategy to achieve greater energy independence.
