Indonesia set to launch B50 biodiesel blending scheme for self-reliance

Indonesia is mulling to roll out an ambitious B50 biodiesel programme this month, marking a significant step in its efforts to curb diesel imports, enhance energy security, and boost the use of domestically produced renewable fuels.

President Prabowo Subianto announced the initiative during the 17th National Farmers and Fishermen Week in Gorontalo, attended by tens of thousands of participants representing all 38 provinces of the country.

As per reports, under the B50 mandate, diesel fuel marketed across Indonesia will contain a 50 per cent blend of palm oil-based biodiesel, representing a major escalation of the nation’s existing biofuel policy.

President Prabowo said “We are moving toward fuel and energy self-sufficiency. In the coming days, we will launch B50, where diesel will contain a 50 per cent palm oil blend. This will allow us to stop importing diesel.”

As the world’s largest producer of palm oil, Indonesia has progressively increased its biodiesel blending requirements over the years. The policy aims to reduce reliance on imported fossil fuels, strengthen energy resilience, and create sustained domestic demand for palm oil.

The government now views bioenergy as a cornerstone of its long-term energy strategy. Prabowo expressed confidence that expanded use of biodiesel and other domestic energy sources could enable the country to achieve full energy self-sufficiency within three to four years.

The push for energy independence comes amid growing geopolitical uncertainties affecting global oil supply chains and critical maritime routes, including tensions around the Strait of Hormuz.

“Our target is clear—within a maximum of four years, we aim to meet all our energy needs independently, without relying on imports,” he said. The government estimates that the programme could generate foreign exchange savings of up to Rp157.28 trillion this year alone.

Energy and Mineral Resources Minister Bahlil Lahadalia also said that his government is ready to implement the programme, stating that B50 is expected to be officially launched on July 1, 2026, following successful trials.

“We are optimistic that the B50 rollout will proceed as scheduled. This initiative will significantly reduce, and potentially eliminate, diesel imports, particularly C48-grade diesel,” Bahlil said in Jakarta.

According to the ministry, extensive testing of B50 has been carried out across various sectors, including heavy machinery, shipping, railways, mining operations, and agricultural equipment, all of which have demonstrated favourable performance outcomes.