InfoSAWIT, JAKARTA – The government is continuing to finalize the implementation of 50% biodiesel (B50) as a blend in diesel fuel, which is targeted to commence in the second half of 2026. Through this policy, Indonesia is expected to stop diesel imports and strengthen energy independence based on domestic resources, specifically Crude Palm Oil (CPO).
Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, said the B50 program has gone through three trial phases and is now entering the final stage. The last trial is being conducted on various types of engines—ranging from ships, trains, to heavy equipment—and is expected to last for six to eight months.
“The last trial now requires about 6 to 8 months. If everything is clear and the B50 decision is made, insyaallah (God willing), we will no longer import diesel. The target is the second half of 2026,” Bahlil stated on the sidelines of an event at the Jakarta International Convention Center (JICC), Senayan, on Thursday (9/10/2025).
According to Bahlil, B50 implementation not only strengthens national energy resilience but also opens up significant opportunities for the palm oil industry. He said the government will optimize national CPO production to meet biofuel needs, including through opening new land in potential areas.
“If intensification and land opening can proceed well, we won’t need to reduce CPO exports,” he added, quoted by InfoSAWIT from Detik on Friday (10/10/2025).
FAME Requirement Reaches 19.7 Million KL
Meanwhile, Deputy Minister of ESDM Yuliot Tanjung explained that to achieve the B50 implementation target in 2026, Indonesia will require a blend of Fatty Acid Methyl Ester (FAME) from palm oil amounting to 19.73 million kiloliters (KL). He believes this requirement can be met with the addition of about 2.3 million hectares of new palm oil land.
However, the government is also preparing a contingency plan if FAME production proves insufficient. In the alternative scenario, the government would implement B45 first, requiring approximately 17 million KL of FAME.
“We are currently assessing raw material availability. B45 needs about 17 million KL, while B50 needs around 19 million KL,” Yuliot disclosed at the JW Marriott Hotel, South Jakarta, on Tuesday (23/9/2025).
The implementation of B50 is a continuation of the successful B35 program which has been nationally enforced since 2023. Beyond curbing dependence on fossil fuel imports, the policy is also expected to enhance the added value of the palm oil industry, absorb farmer production, and reduce carbon emissions from the transportation sector. (T2)
