The Indonesian government has confirmed that it will not implement a 50% palm oil-based biodiesel (B50) mandate this year, Palm Oil magazine wrote today.
Coordinating Minister for Economic Affairs Airlangga Hartarto said in the report that President Prabowo Subianto had announced that this year’s mandatory biodiesel programme would remain at the B40 level, while preparations towards B50 continued.
Hartarto explained that policy decisions were being guided primarily by movements in global energy and palm oil prices.
As a result, the government was closely monitoring the price gap between diesel fuel and crude palm oil (CPO) as a key reference.
“This year, the president’s directive is to maintain B40. For B50, studies must continue. We are monitoring fuel prices, palm oil prices and the spread between them,” Hartarto said after a meeting on 13 January in South Jakarta.
Although B50 has not been rolled out, development efforts are ongoing, according to the report. The government is continuing technical assessments, including vehicle testing, to ensure industry players and engines are ready for the increased biodiesel blend.
“Technical studies and automotive trials are still underway. Implementation will depend heavily on price developments,” Hartarto was quoted as saying in the Palm Oil magazine report, citing an interview with CNN.
He added that the government was preparing a possible B50 implementation framework for the second half of 2026.
However, under current market conditions, he said B40 would remain the primary mandate, while all supporting elements for B50 were being prepared.
“We are preparing for the second semester, but the current price scenario refers to B40. At the same time, we are also making sure we are ready for B50,” he added.
The government had previously indicated plans to introduce B50 in the latter half of 2026 as part of a broader strategy to curb diesel imports, the report said.
Minister of Energy and Mineral Resources Bahlil Lahadalia said the new direction had been discussed and agreed upon in a limited cabinet meeting chaired by President Prabowo.
The B50 plan represents the next stage of Indonesia’s biodiesel mandate, which has been in place since 2016, progressing from B10 and B20 to the current B40.
Since the introduction of B40, diesel imports had fallen sharply to around 4.9M barrels/year, equivalent to approximately 10% of national consumption, Palm Oil magazine wrote.
The government has said increasing the biodiesel blend would reduce import dependence, strengthen the energy trade balance, add value to the palm oil sector, and support national emissions reduction targets and the broader energy transition agenda.
