Indonesia Weighs B45 Biodiesel Plan with 17 Million KL FAME Demand

Indonesia is considering the implementation of a B45 biodiesel program as a transitional step before fully adopting B50 in 2026. According to Deputy Minister of Energy and Mineral Resources Yuliot Tanjung, the B45 mandate would require about 17 million kiloliters of palm-based fatty acid methyl ester (FAME), compared with nearly 19–20 million kiloliters needed for B50. This lower demand would ease pressure on raw material supply and reduce the need for significant new palm oil plantation areas.

The government is currently evaluating whether to move directly to B50 or introduce B45 first. Regardless of the pathway, the overall target remains clear: Indonesia aims to achieve B50 by 2026 as part of its clean energy and emissions reduction strategy.

The country has already implemented B40, which saved an estimated USD 9.3 billion in foreign exchange, generated more than IDR 20 trillion in added value for the palm industry, and created around 2 million jobs. Officials say B45 could serve as a practical bridge, ensuring policy continuity while securing environmental and economic benefits.