Jakarta. Indonesia is sticking to the plan of distributing biodiesel with higher palm oil content starting in 2026.
Indonesia has just begun implementing the B40 mandate early this year. The B40 is a type of biodiesel blend with 40 percent palm oil content and 60 percent diesel fuel. This marks an increase from the B35 mandate that was in place for two years. President Prabowo Subianto wants Indonesia to be self-sufficient in its energy supply. With a higher biodiesel mandate, the world’s largest palm oil producer Indonesia can import less diesel.
“We are trying to implement a B50 mandate in 2026. If we could do that, hopefully, we would no longer have to import diesel. This is part of us trying to reach energy self-sufficiency,” Energy Minister Bahlil Lahadalia told reporters in Jakarta on Monday.
The ministry data shows that Indonesia produced 13.15 million kiloliters of biodiesel throughout 2024, far exceeding the targeted 11.3 million kiloliters. Indonesia also managed to save about $9.33 billion in foreign exchange as the country cut down its diesel import thanks to the B35 policy. Indonesia’s biodiesel production totaled 3.42 million kiloliters in 2017, during which the palm oil content stood at 20 percent. Production eventually soared over the years as the palm oil content grew.
Indonesia is set to produce around 15.6 million kiloliters of biodiesel in 2025. According to government estimates, Indonesia will be able to save at least Rp 147.5 trillion (approximately $9 billion) in foreign exchange this year with the B40 mandate now in place. The policy is expected to bring down diesel imports to 4.6 million kiloliters.
Not long ago, the government revealed that they would deploy a team starting this week to keep an eye on the distributed B40 biodiesel. This watchdog aims to make sure that the circulating biodiesel really has a 40 percent palm oil share.
