InfoSAWIT, JAKARTA – The Indonesian government will officially implement the B50 biodiesel mandate starting July 1, 2026, as part of its strategy to strengthen national energy independence amid global oil supply uncertainties.

The policy involves blending 50 percent palm oil-based fuel with 50 percent diesel, reducing reliance on fossil fuels while maximizing domestic palm oil utilization.

Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that the policy is part of broader national energy efficiency efforts.

“As part of energy independence and efficiency, the government will implement B50 starting July 1, 2026,” Airlangga said during a virtual press conference monitored by InfoSAWIT.

The policy is projected to reduce fossil fuel consumption by up to 4 million kiloliters annually and generate subsidy savings of approximately Rp48 trillion.

Meanwhile, Energy Minister Bahlil Lahadalia noted that the program could also lead to a surplus of diesel supply.

“With B50 implementation, we are optimistic that Indonesia will experience a diesel surplus this year, especially as refinery capacity increases,” he said.

The combination of B50 implementation and refinery expansion under the Refinery Development Master Plan (RDMP) is expected to strengthen national energy resilience. (T2)