Jakarta: Indonesia is moving forward with plans to make biodiesel containing 50% palm oil, known as B50, mandatory by 2026, aiming to reduce imports of gasoil, Energy Minister Bahlil Lahadalia said, reports Reuters.
Currently, Indonesia—a top global palm oil producer—requires a 40% biofuel blend (B40). The government plans to gradually increase the palm oil content, with a possible interim step to 45%, before transitioning to B50. “The plan is to push for B50 in 2026 to curb gasoil imports,” Minister Lahadalia stated.
Laboratory tests on the B50 blend were completed in August, and road trials are now scheduled, an energy ministry official said. Adoption of B50 would require 20.1 million kilolitres of palm oil-based biofuel annually, compared to 15.6 million KL for B40.
Indonesia’s expansion of domestic palm oil use can influence global vegetable oil prices, raising concerns that the country—the world’s largest exporter—will have less palm oil available for international markets.
