Indonesia to phase out diesel imports this year following B50 mandate

Our diesel and crude imports, which amounted to 1 million barrels per day, will now be reduced to around 700,000 barrels per day,

Jakarta (ANTARA) - Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia confirmed that Indonesia will stop importing diesel fuel this year following the implementation of the 50 percent biodiesel (B50) mandate by July 2026.

"In July, we will officially launch B50. This will reduce Indonesia's dependence on diesel imports. Starting this year, we will no longer import diesel," Lahadalia stated in Jakarta on Thursday.

He explained that total diesel consumption in Indonesia has currently reached 39 million kiloliters (KL), with the government already implementing the 40 percent biodiesel (B40) mandate.

"Under the B40 program, 40 percent of the fuel blend consists of FAME. FAME is produced from crude palm oil (CPO) and methanol. Then, it is blended into diesel fuel, known as B40," he explained.

Furthermore, Lahadalia assessed that the implementation of the B50 policy is expected to maintain the price of fresh fruit bunches (TBS) of palm oil at the farmer level while simultaneously reducing diesel fuel imports.

"We are expanding downstream processing for domestic consumption to help maintain a stable market and better prices for palm oil farmers," he said.

Lahadalia also estimated that the Indonesian government would be able to meet domestic demand of up to 300,000 barrels per day when the B50 mandate begins.

"With B50, a portion of diesel consumption will be substituted by biodiesel, approximately 300,000 barrels per day, which can be supplied domestically," he explained.

"Our diesel and crude imports, which amounted to 1 million barrels per day, will now be reduced to around 700,000 barrels per day, because the 300,000 barrels will be converted to B50," he added.

Meanwhile, B50 technical testing for the automotive sector began on December 2, 2025, and is targeted for completion in June 2026.

The government is also conducting technical trials for agricultural machinery and equipment and mining equipment, targeted for completion in the second half of 2026.

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

Related news: Indonesia to launch B50 biodiesel in July to end diesel imports

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Translator: Arnidhya Nur Zhafira, Cindy Frishanti Octavia

Editor: M Razi Rahman

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