Indonesia Accelerates B50 Biodiesel Plan to Cut Diesel Imports by 2026

Indonesia’s Energy Minister Bahlil Lahadalia announced that the country is accelerating plans to implement the B50 biodiesel program by 2026, which will mandate a 50% blend of palm oil–based biofuel in diesel. As the world’s largest palm oil producer, Indonesia currently enforces a B40 policy and intends to raise the blending ratio to 45% before transitioning to B50. The Ministry of Energy confirmed that laboratory tests for B50 were completed in August, with road trials set to follow. Full implementation of B50 would require about 20.1 million kiloliters of palm oil–based biodiesel annually, compared to 15.6 million under B40. The move aims to reduce diesel imports and improve the trade balance but could tighten global palm oil supplies, potentially pushing up vegetable oil prices worldwide.