Jakarta: Indonesia will continue with its mandatory B40 biodiesel blending policy this year, as plans to raise the blend to B50 are still being evaluated, Coordinating Minister for Economic Affairs Airlangga Hartarto has said, reports Antara News.
Under the current B40 policy, biodiesel is produced by blending 60% petroleum diesel with 40% palm oil-based biofuel.
Speaking to reporters in Jakarta on Tuesday, Hartarto said the move to B50 requires detailed assessment, especially regarding differences in prices between fuel oil, petroleum diesel and palm oil in both domestic and global markets.
He said the B50 plan has not been dropped and remains under consideration. Technical studies and vehicle trials are continuing, while the government closely tracks price movements and assesses the readiness of the domestic industry across the entire supply chain.
According to Hartarto, the government regularly reviews the price gap between biodiesel, petroleum diesel and palm oil to ensure the blending policy remains balanced, protects energy supply and supports overall economic stability.
He said preparations for a possible B50 mandate are ongoing, but the timing of implementation will depend on market conditions. For the time being, President Prabowo Subianto has instructed that the B40 policy remain in place.
Hartarto said the government is making preparations for the second half of the year, but current price conditions mean the president’s direction is to stay with B40, while keeping the option open to move to B50 when conditions allow.
Indonesia began enforcing the B40 biodiesel mandate in early 2025 as part of efforts to strengthen energy security and promote environmental sustainability. The government has earlier indicated an intention to increase the blend to B50 in 2026.
The biodiesel policy is aligned with the Prabowo administration’s Asta Cita programme, which lists food and energy security among its main national priorities.
