Indonesia Targets Diesel Independence with B50 Biodiesel Launch by 2026

Indonesia is moving closer to finalizing its plan to implement a 50% biodiesel blend (B50) by the second half of 2026, aiming to eliminate diesel imports entirely. Energy and Mineral Resources Minister Bahlil Lahadalia confirmed that B50 has undergone three rounds of testing and is now in its final stage, which will take six to eight months and include trials on ships, trains, and heavy equipment.

The government plans to boost crude palm oil (CPO) production through intensification and new land development to ensure sufficient feedstock supply. Deputy Minister Yuliot Tanjung noted that achieving the B50 target requires about 19.73 million kiloliters of palm-based FAME, supported by 2.3 million additional hectares of oil palm plantations. If full B50 implementation faces constraints, Indonesia may initially adopt a B45 blend as a transitional measure.