Indonesia to roll out B50 biodiesel mandate from July

Indonesia will implement a 50% biodiesel blending mandate starting July 1, as part of efforts to reduce reliance on fossil fuels and manage rising energy costs, a senior minister said.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the government is ready to launch the B50 program, with PT Pertamina prepared to carry out the blending.

 “The government will implement B50 starting July 1, 2026, and Pertamina is prepared to carry out the blending,” he said, adding the program could cut fossil fuel consumption by around 4 million kiloliters per year.

Read also: Prabowo says B50 biodiesel mandate to begin this year amid energy concerns

The policy is expected to generate savings of up to Rp48 trillion (about $2.8 billion) within the first six months through reduced fuel imports and lower biodiesel subsidy spending.

The move comes amid rising global oil prices, which have put pressure on energy costs and fiscal balances.

Indonesia has gradually increased biodiesel blending mandates in recent years, moving from B30 to B40, and now to B50, as it seeks to strengthen energy security and expand the use of palm oil-based fuels.

Editing by Alexander Ginting