Eojonegoro, East Java: The Indonesian government plans to roll out the Biodiesel 50 (B50) program in 2026, Deputy Minister of Energy and Mineral Resources Yuliot Tanjung confirmed during a visit to Bojonegoro District on Thursday, June 26, reports Antara.
B50 is a fuel blend consisting of 50 percent biofuel, primarily made from palm oil, and 50 percent traditional diesel. At present, the country is promoting B40, which contains 40 percent biofuel.
“We are currently evaluating B40 and preparing to begin the B50 program next year,” Tanjung said.
He added that the government is open to moving up the B50 launch, depending on how quickly the country can increase production of fatty acid methyl esters (FAME), the main ingredient in biodiesel. FAME is made from vegetable oils, including palm oil.
“To implement B50, we must ensure we have enough FAME. If production capacity allows, we will accelerate the timeline,” Tanjung explained.
In a related development, Agriculture Minister Andi Amran Sulaiman recently predicted a global rise in crude palm oil (CPO) prices due to Indonesia’s push toward using more palm oil domestically for biodiesel.
Speaking in Jakarta in May, Sulaiman said that around 5.3 million tons of CPO would be set aside for B50 production in 2026. “Last year, we exported 26 million tons of CPO. If we reduce exports to 21 million tons, prices will go up,” he said.
He also noted that Indonesia currently supplies nearly 66 percent of the world’s CPO. Redirecting more of this oil for local use would likely affect the global market.
“If prices rise, our farmers will benefit. We want to see them doing well,” Sulaiman added.
