Indonesia to launch B50 biodiesel policy on July 1 to cut imports

Jakarta (ANTARA) - Indonesia is on track to implement the B50 biodiesel policy on July 1, 2026, to significantly reduce imports of C48 diesel fuel, according to Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia.

"God willing, we are very optimistic that the B50 policy will be implemented on July 1. This will reduce or even eliminate diesel imports, especially C48,” Bahlil told reporters in Jakarta on Thursday.

He confirmed that the technical implementation of the B50 program—a fuel blend containing 50 percent palm oil-based biodiesel—has undergone rigorous trials and yielded positive results.

As of today, the B50 blend features a lower water content than the current B40 mixture. It has been tested across various transportation and industrial sectors, including heavy mining machinery, excavators, commercial ships, locomotives, and agricultural equipment.

Furthermore, the shift to higher-blend biodiesel is projected to save the country up to Rp157.28 trillion (approximately US$8.84 billion) in foreign exchange this year.

The ministry’s spokesperson Dwi Anggia detailed that the foreign exchange savings from cutting diesel imports through the B50 policy this year would increase by roughly 17.9 percent compared to last year's savings of Rp133.3 trillion (US$7.49 billion).

The B50 initiative also holds the potential to generate Rp24.68 trillion (US$1.39 billion) in added value from crude palm oil (CPO), absorb 2.21 million workers, and reduce greenhouse gas emissions by 46.72 million tons.

Therefore, Anggia noted, the implementation of B50 will not only positively impact the national trade balance but also stimulate domestic economic growth.

A series of technical trials for B50 have been underway since late last year.

Technical testing for the automotive sector commenced on December 2, 2025, and is targeted for completion in June 2026. Meanwhile, technical trials for agricultural machinery and tools, alongside mining equipment, are scheduled to wrap up in the second half of 2026.

The government is also conducting B50 technical testing for the railway and power generation sectors, though the verification process is not yet fully complete.

"Although the technical testing phase is still ongoing in some sectors, we ensure that this implementation will be carried out simultaneously," Anggia added.

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Translator: Imamatul Silfia, Yashinta Difa

Editor: Azis Kurmala

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