InfoSAWIT, SEOUL – The implementation of Indonesia’s 50 percent biodiesel mandate (B50) this year is expected not only to strengthen domestic palm oil utilization but also potentially create a surplus of gasoil (diesel) supply in the domestic market.

The B50 policy, which blends 50 percent palm oil-based biodiesel with 50 percent fossil diesel, is considered a strategic move to enhance national energy security while supporting domestic palm oil absorption.

Minister of Energy and Mineral Resources, Bahlil Lahadalia, stated that despite ongoing geopolitical uncertainties and global energy efficiency measures adopted by various countries, Indonesia’s fuel reserves remain above the national minimum threshold.

“Amid global geopolitical tensions and energy efficiency policies in several countries, we are grateful that Indonesia’s fuel reserves remain above the minimum national standard,” Bahlil said in an official statement reported by InfoSAWIT on Thursday (April 2, 2026).

The government is also accelerating policy reviews to respond to rapidly changing global energy prices, particularly in the oil and gas sector, to maintain domestic supply and price stability.

“Under the President’s direction, there will be no adjustment to subsidized fuel prices—they will remain unchanged. Meanwhile, discussions on non-subsidized fuel prices are still ongoing,” he added.

To maintain affordability, the government has decided to keep subsidized fuel prices stable, while also limiting purchases—up to 50 liters per day per vehicle—for certain fuel types. These measures are expected to balance national energy supply and demand while supporting the B50 rollout. (T2)