InfoSAWIT, JAKARTA — The government, through the Ministry of Energy and Mineral Resources, has officially set the 2026 allocation for biodiesel-type biofuel at 15,646,372 kilolitres, forming the operational basis for next year’s mandatory biodiesel blending programme aimed at strengthening national energy mix and palm oil downstreaming.
The allocation is stipulated in Ministerial Decree No. 439.K/EK.01/MEM.E/2025 on the appointment of fuel and biofuel business entities and biodiesel volume allocation for diesel blending in 2026.
Director General of New and Renewable Energy and Energy Conservation, Eniya Listiani Dewi, said the biodiesel allocation is divided into two categories: Public Service Obligation (PSO) and non-PSO.
PSO allocation is set at 7,454,600 kilolitres, while non-PSO reaches 8,191,772 kilolitres.
“The 2026 biodiesel mandate will be supported by synergy between 32 fuel suppliers and 26 biodiesel producers appointed by the government, while maintaining the PSO incentive scheme as applied previously,” Eniya said in an official statement published by InfoSAWIT on Saturday (31/1/2026).
The ministry said the allocation is a strategic step to reduce diesel imports, strengthen national energy security, and increase domestic renewable energy utilisation while supporting greenhouse gas emission reduction targets.
Government estimates show the 2026 biodiesel programme could generate Rp21.8 trillion in added value from CPO downstreaming, save around Rp139 trillion in diesel import foreign exchange, and support more than 1.9 million jobs across the palm oil and renewable energy value chains.
From an environmental perspective, the programme is projected to cut emissions by about 41.5 million tonnes of CO₂ equivalent.
Authorities also pledged tighter governance through stricter quality and distribution controls, including independent surveyor verification and monitored delivery points. The policy is intended to ensure optimal B40 implementation and benefits for industry players and Smallholders, with room for future volume adjustments if national energy strategies change. (T2)
