Indonesia advances B50 biodiesel rollout to strengthen energy resilience

Indonesia is set to introduce its B50 biodiesel programme from 1 July following nearly six months of successful trials, Energy Minister Bahlil Lahadalia has announced, according to ANTARA.

The B50 blend, composed of 50 per cent crude palm oil and 50 per cent fossil diesel, has undergone testing across a wide range of sectors, including heavy equipment, maritime transport, rail systems, and logistics vehicles. Authorities report that the trials demonstrated stable performance, paving the way for nationwide implementation.

According to Lahadalia, the programme is expected to reinforce energy security, increasing the use of domestic renewable resources. He noted that global uncertainties underscore the importance of building a more self-sufficient energy system capable of adapting to external pressures.

Indonesia has already made significant progress with its B40 mandate, which combines 40 per cent palm-based biodiesel with conventional diesel. The policy has contributed to a reduction in diesel imports by 3.3 million kilolitres and lowered carbon emissions by 38.88 million tonnes of CO₂ equivalent. In 2025, biodiesel utilisation reached 14.2 million kilolitres, surpassing the national target.

The transition to B50 forms part of President Prabowo Subianto’s broader economic agenda, with projections indicating a potential annual reduction of 4 million kilolitres in fossil fuel consumption. Coordinating Economic Minister Airlangga Hartarto has stated that the measure could also generate substantial fiscal savings. The rollout will proceed in stages, with ongoing monitoring to ensure operational efficiency and supply stability.