The Indonesian government has announced plans to introduce a mandatory 50% biodiesel (B50) program in 2026 to reduce the need for diesel imports. The announcement was made by Minister of Energy and Mineral Resources Bahlil Lahadalia.
As part of the country’s efforts to transition to cleaner energy, the government will first implement the mandatory 40% biodiesel (B40) program this year, with preparations underway for the launch of the B50 program next year.
Minister Lahadalia explained that the B50 program supports President Prabowo Subianto’s goal of achieving energy security. He noted that this initiative will help increase Indonesia’s energy reserves, strengthen its ability to meet domestic energy needs and reduce dependence on imports.
Deputy Minister Yuliot Tanjung added that the mandatory use of B40 biodiesel would be fully enforced by February this year. The B40 fuel blend consists of 60% diesel and 40% biofuel made from palm oil.
Although the B40 program officially began on January 1, Tanjung said there is a transition phase lasting about 1.5 months. During this time, remaining fuel stocks will be used, and systems will be updated to handle the change.
Tanjung also mentioned that the first phase of the B40 program is expected to produce 15.6 million kilolitres of biodiesel, with production set to increase gradually throughout the year.
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