Indonesia has begun the nationwide rollout of B50 biodiesel, with state-owned energy company Pertamina Patra Niaga commencing distribution under the government’s mandate requiring diesel fuel to contain a 50% blend of palm oil-based biodiesel.
The programme, which officially came into effect on July 1, makes Indonesia the first country to implement a B50 biodiesel mandate nationwide. Pertamina initially prepared 29 of its 126 fuel terminals to distribute the new fuel and plans to expand supplies across the country during a three-month transition period, biofuel international reported.
The phased rollout is intended to allow suppliers to exhaust existing inventories of B40 biodiesel before the nationwide shift to B50 is completed.
Indonesia’s Ministry of Energy and Mineral Resources said preparations for the transition have been completed across major industrial sectors. The ministry added that compatibility tests were carried out on heavy equipment, mining machinery, locomotives and marine vessels to ensure the higher biodiesel blend performs reliably under different operating conditions.
The B50 programme forms a key part of President Prabowo Subianto’s strategy to improve the country’s energy independence by reducing dependence on imported fossil fuels.
The government expects the higher biodiesel blend to lower diesel imports, improve Indonesia’s trade balance and reduce exposure to volatility in global crude oil prices.
In addition to strengthening energy security, officials said the programme is expected to reduce greenhouse gas emissions, support domestic palm oil producers and generate employment across the biodiesel supply chain.
Pertamina aims to complete nationwide distribution of B50 biodiesel at all fuel stations by October 1, following the transition period.
