Jakarta (VNA) – Indonesia will begin the nationwide implementation of its mandatory B50 biodiesel programme from July 1, a move expected to strengthen energy self-sufficiency and reduce diesel imports.
PT Pertamina Patra Niaga, the downstream subsidiary of state oil and gas company PT Pertamina, has declared its full operational readiness nationwide for the implementation of the programme, according to the company’s Director of Downstream Optimisation and Distribution Hari Purnomo.
Hari noted that total fuel distribution volumes will remain unchanged from the current B40 mandate.
The primary adjustment lies in the fuel's composition ratio, which increases the palm-oil-based fatty acid methyl ester (FAME) content from 40% to 50%, mixed with 50% petroleum diesel.
As for pricing, it will be adjusted based on prevailing market conditions when the policy takes effect, he added.
Indonesian Minsiter of Energy and Mineral Resources Bahlil Lahadalia emphasised that the July rollout is a critical step toward national energy independence, aimed at reducing the country's reliance on imported diesel fuel.
The Indonesian Government estimates that the shift to higher-blend biodiesel is projected to save the country up to 157.28 trillion IDR (approximately 8.84 billion USD) in foreign exchange this year.
Bahlil confirmed that a series of technical trials of the B50 blend have yielded positive results.
Data compiled through mid-June indicates that the B50 blend exhibits a lower water content than B40 and has performed well across various transportation modes and heavy machinery.
Technical testing for the automotive sector, which began in December 2025, is on track for completion this month. Meanwhile, comprehensive field testing for mining equipment, excavators and agricultural machinery will continue into the second half of 2026.
The Indonesian Government is also finalising specialised B50 technical assessments for the national railway network and the power generation sector to ensure reliability across both the transportation and power sectors./.
Indonesia boosts energy security with B50 biofuel
The planned transition to B50 forms part of President Prabowo Subianto’s broader strategy to strengthen the economy’s resilience against global supply disruptions.
