Government to raise biodiesel allocation ahead of B50 rollout in July
Friday, June 5 2026 - 09:52 AM WIB
By Pandu Setiabudi
The government will increase its 2026 biodiesel allocation to 17.60 million kiloliters (kL) ahead of the planned implementation of the B50 biodiesel mandate on July 1, according to the Ministry of Energy and Mineral Resources (ESDM).
The increase will be formalized through a ministerial decree scheduled for issuance this month, Director General of New and Renewable Energy and Energy Conservation (EBTKE) Eniya Listiani Dewi told a hearing with Commission XII of the House of Representatives on June 4.
The revised allocation is higher than the initial 2026 allocation of 15.65 million kL, which was based on full-year implementation of the B40 mandate.
"The initial biodiesel allocation was 15.65 million kiloliters, and it will be increased to 17.60 million kiloliters through a ministerial decree to be issued this month," Eniya said.
Of the revised allocation, about 8.39 million kL will be designated for the Public Service Obligation (PSO) segment and 9.22 million kL for the non-PSO segment. The figures include volumes already distributed prior to the issuance of the decree.
Read also: Indonesia tests B50 biodiesel use in rail sector ahead of July rollout
Biodiesel consumption reached 4.62 million kL during January-April, comprising 2.38 million kL for the PSO segment and 2.23 million kL for non-PSO users.
According to Eniya, raising the biodiesel blending mandate to 50% from July is projected to generate foreign exchange savings of Rp157.28 trillion, increase CPO value-added by Rp24.68 trillion, and reduce greenhouse gas (GHG) emissions by 46.72 million tonnes of CO₂ throughout 2026.
Indonesia's biodiesel allocation has continued to increase in recent years. In 2025, the country allocated 15.62 million kL of biodiesel, consisting of 7.12 million kL for PSO and 8.49 million kL for non-PSO sectors. Actual biodiesel uptake reached 14.94 million kL, equivalent to 95.67% of the allocation, comprising 6.91 million kL for PSO and 8.03 million kL for non-PSO.
In addition to biodiesel, Eniya said that a ministerial decree mandating 5% bioethanol blending (E5) will also be issued this month, requiring all fuel suppliers to implement the blending requirement. The E5 mandate will apply only to the non-PSO fuel segment, with implementation across the entire island of Java this year.
Bioethanol blending has already been introduced on a limited scale through 179 Pertamina fuel stations in 2026, with bioethanol utilization reaching 379 kL as of March. In 2025, total bioethanol utilization amounted to 812 kL through 177 fuel stations.
Editing by Reiner Simanjuntak