Jakarta: Indonesia is pressing ahead with plans to increase the palm oil content in its biodiesel, aiming to introduce a B50 mandate by 2026, government officials confirmed, reported Jakarta Globe
The country began rolling out the B40 mandate earlier this year, which blends 40 per cent palm oil with 60 per cent diesel. This follows the B35 mandate that was in effect for two years. President Prabowo Subianto has emphasized the need for energy self-sufficiency, and increasing the biodiesel blend is seen as a way for Indonesia—the world’s largest palm oil producer—to reduce its reliance on diesel imports.
“We are working towards implementing the B50 mandate in 2026. If we achieve this, we hope to completely stop importing diesel. This is part of our broader goal to be self-sufficient in energy,” Energy Minister Bahlil Lahadalia told reporters in Jakarta on Monday.
Government data shows that Indonesia produced 13.15 million kiloliters of biodiesel in 2024, surpassing the target of 11.3 million kiloliters. The country saved approximately $9.33 billion in foreign exchange by cutting diesel imports under the B35 policy. Biodiesel production has steadily increased since 2017 when Indonesia produced 3.42 million kiloliters with a 20 percent palm oil blend.
With the B40 mandate now in place, Indonesia expects to produce around 15.6 million kiloliters of biodiesel in 2025. Officials estimate the country could save at least Rp 147.5 trillion (around $9 billion) in foreign exchange this year while reducing diesel imports to 4.6 million kiloliters.
To ensure compliance with the new blend, the government has deployed a monitoring team this week to oversee the distribution of B40 biodiesel. The team will verify that the fuel being circulated contains the required 40 per cent palm oil share.
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