EN.malanginspirasi.com – The mandatory B50 biodiesel program will officially begin across Indonesia on July 1, 2026. The policy was announced by Coordinating Minister for Economic Affairs Airlangga Hartarto during an online press conference on Tuesday, March 31, 2026, as a strategic move to accelerate national energy independence and improve state budget efficiency.
Under the B50 policy, all diesel fuel sold in the market will consist of a 50% palm oil-based biodiesel (CPO) blend and 50% fossil diesel. State-owned energy company Pertamina has confirmed its technical readiness to start the blending process on the scheduled date, building on the B40 program that has been in place since January 1, 2025.
Airlangga stated that the initiative forms part of the government’s response to global geopolitical shifts and aims to reduce reliance on imported fuel. The implementation of B50 is projected to save up to Rp48 trillion in annual energy subsidies and cut fossil fuel consumption by 4 million kiloliters per year.
Indonesia’s biodiesel program has been rolled out gradually since 2015, progressing from B15 to B20, B30, B35, and most recently B40.
Although a phased approach to B50 was originally planned, the government has decided to accelerate the rollout to the second half of 2026 following a direct directive from President Prabowo Subianto to strengthen national energy resilience.
The Ministry of Energy and Mineral Resources (ESDM) and Pertamina completed all technical trials throughout 2025. With B50 in place, Indonesia is expected to completely halt diesel imports starting mid-2026.
Green Energy Transition
The policy is anticipated to deliver added value to the domestic palm oil industry while supporting Indonesia’s green energy transition. National CPO absorption will increase, benefiting palm farmers and advancing downstream processing. In the long term, the higher biodiesel content is also expected to significantly reduce carbon emissions.
For consumers, diesel prices are predicted to remain stable, as savings from reduced subsidies can be reallocated more efficiently.
Starting July 1, all motorized vehicles, industry, transportation, and agriculture sectors will be required to use B50 diesel.
The government will conduct regular monitoring of the program’s implementation and is prepared to grant temporary dispensations for sectors needing technical adjustments, such as certain mining heavy equipment or specific vessels.
Until the official rollout date, diesel fuel on the market will continue to follow the existing B40 standard.
