Indonesia Maintains B40 Biodiesel Mandate as B50 Transition Remains Under Review

Indonesia will continue to implement its B40 mandatory biodiesel blending policy this year, while plans to transition to B50 remain under further study, Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed.

Under the B40 mandate, biodiesel consists of 60% petroleum diesel and 40% palm oil–based biofuel. Speaking to reporters in Jakarta on Tuesday, Hartarto said the move to B50 requires a comprehensive assessment, particularly of the price gap between fuel oil, petroleum diesel, and palm oil in both domestic and international markets. Ensuring economic balance and energy security remains a key government priority.

Hartarto stressed that the B50 policy has not been canceled. Technical studies and vehicle trials are ongoing, while authorities continue to monitor price volatility and the readiness of Indonesia’s biodiesel industry across the entire supply chain, from upstream feedstock production to downstream distribution.

The government is continuously calculating price differentials between biodiesel, petroleum diesel, and palm oil to maintain a balanced blending policy, secure fuel supplies, and support overall economic stability. Although preparations for B50 are progressing, actual implementation will depend on future market conditions.

“We are preparing for the second half of the year, but given current prices, the president’s directive is to maintain B40, even though we are technically ready for B50,” Hartarto said.

Indonesia began implementing the B40 mandate in early 2025 as part of broader efforts to strengthen energy security and advance its green and sustainable development agenda. The policy aligns with President Prabowo Subianto’s ‘Asta Cita’ vision, which places food and energy security at the center of national development priorities.