Indonesia has officially begun implementing its B50 biodiesel programme from 1 July 2026, marking another step in the government’s effort to increase the use of renewable fuels. While the mandate has taken effect, businesses have been given a three-month transition period to complete the shift from B40 biodiesel, with full nationwide implementation expected by 1 October.
The government has not yet announced the official retail price for B50. However, officials have confirmed that pricing will continue to follow the existing mechanism used for diesel fuel.
Three-Month Adjustment Period for Nationwide Implementation
The Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Laode Sulaeman, said President Prabowo Subianto was scheduled to officially launch the B50 programme on 1 July.
“Based on the latest information we received, B50 will be launched by the President himself. The plan is for July 1,” he said.
Laode explained that the implementation would be carried out nationwide, but fuel distributors and businesses would be allowed time to adjust operationally.
“Nationally, there’s a national adjustment period. So, there’s still a remaining B40 that needs to be used up first, and we’re given up to three months to adjust. So, the adjustment will be until we reach 100 per cent B50,” he said.
The Director General of New, Renewable Energy and Energy Conservation (EBTKE), Eniya Listiani Dewi, also confirmed that the transition period would remain in place until the beginning of October.
“As of July 1, with B50. Then the second point is the transition period. The transition period is set for three months. So, what does this three-month transition period mean? First, depleting stocks,” Eniya said during CNBC Indonesia’s Energy Forum in Jakarta, as quoted from CNBC.
Under the policy, all diesel fuel distributed across Indonesia is expected to contain a 50 per cent palm oil-based biodiesel blend by 1 October 2026.
Regarding fuel prices, Laode said there would be no special pricing mechanism for B50.
“The price will follow the usual fuel price, there’s nothing special,” he said at the Ministry of Energy and Mineral Resources office in Jakarta.
Government Reports Positive Results from B50 Trials
Ahead of the nationwide rollout, Minister of Energy and Mineral Resources Bahlil Lahadalia said trials of B50 had produced encouraging results across a range of transportation and industrial sectors.
According to Bahlil, the fuel was tested using heavy equipment, ships, trains, mining vehicles, excavators and agricultural machinery before the mandatory implementation.
“Earlier, we had a meeting regarding preparations for the implementation of B50, which will be officially launched on July 1, God willing. Technically, our team from the Ministry of Energy and Mineral Resources under the leadership of the Director General of New, Renewable Energy and Energy Conservation, Prof Enya, has conducted trials, and the results are very encouraging,” Bahlil said.
One of the key findings, he said, was that B50 demonstrated lower water content than the previous B40 blend.
Bahlil added that the testing programme covered multiple sectors to ensure the fuel’s suitability before nationwide implementation.
The B50 programme forms part of Indonesia’s broader strategy to expand the use of palm oil-based biofuels, reduce dependence on imported fossil fuels, and strengthen domestic energy security. During the transition period, remaining B40 supplies will continue to be distributed before the country fully adopts the B50 blend nationwide.
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