Indonesia is preparing a major step in its biofuel strategy, with the Energy Ministry confirming that road testing for B50 biodiesel—fuel containing 50% palm oil—will begin in early December. According to senior official Eniya Listiani Dewi, the trials aim to evaluate vehicle performance, technical compatibility and supply readiness ahead of a planned nationwide shift from B40 to B50 in the second half of next year.

However, limited biodiesel production capacity means the government is considering a selective rollout. Public service obligation (PSO) sectors such as public transportation and key logistics operations may be the first to adopt the B50 mandate, while non-PSO industries could remain at lower blend levels.

Dewi noted that the government will conduct a comprehensive review of pricing, supply stability, technological issues and palm-based fuel sustainability, promising a transparent release of the findings. She also acknowledged that upstream constraints remain the biggest challenge, stressing that Indonesia “cannot implement 50% blending across all sectors at the same pace.”