Indonesia plans to introduce its B50 biodiesel policy on 1 July 2026, with Energy and Mineral Resources Minister Bahlil Lahadalia expressing confidence that the higher blend will sharply reduce, or potentially eliminate, C48 diesel imports. Biofuels Central, carrying an ANTARA report, said the programme would use fuel containing 50% palm oil-based biodiesel.
Lahadalia said technical trials had delivered positive results and that the B50 blend had a lower water content than the existing B40 mixture. Testing has covered a range of transport and industrial applications, including heavy mining machinery, excavators, commercial vessels, locomotives and agricultural equipment. However, the timetable outlined in the report shows that testing and verification remain incomplete in some sectors ahead of the planned introduction.
Automotive trials began on 2 December 2025 and are scheduled to finish in June 2026. Tests involving agricultural machinery and tools, as well as mining equipment, are due to conclude in the second half of 2026. Railway and power generation testing is also under way, with verification not yet complete. Despite the outstanding work, the government said implementation would proceed simultaneously rather than wait for every sector’s testing programme to finish.
The ministry projects foreign exchange savings of up to Rp157.28 trillion, or approximately US$8.84 billion, this year from the move to higher-blend biodiesel. Ministry spokesperson Dwi Anggia said the anticipated savings from lower diesel imports would be about 17.9% above last year’s Rp133.3 trillion, equivalent to US$7.49 billion, according to Biofuels Central.
The report also cited potential benefits of Rp24.68 trillion, or US$1.39 billion, in added value from crude palm oil, employment for 2.21 million workers and a greenhouse gas emissions reduction of 46.72 million tonnes. Anggia presented the policy as supporting both Indonesia’s trade balance and domestic economic growth. Those figures remain projected benefits rather than reported outcomes of the B50 rollout.