Indonesia to Implement B50 Palm Oil Biodiesel Mandate Next Year

Published Feb 6, 2025

Tridge summary

Indonesia is planning to increase the palm oil content in its biodiesel blends from the current 40% (B40) to 50% (B50) by 2026 in an effort to achieve energy self-sufficiency and reduce diesel imports. This builds on the success of the B40 mandate, which was implemented early this year and has led to a significant increase in biodiesel production, from 3.42 million kiloliters in 2017 to 13.15 million kiloliters in 2024. The country has also saved around $9.33 billion in foreign exchange by producing more biodiesel and reducing diesel imports. A team will be set up to monitor the distribution of B40 biodiesel to ensure it meets the required palm oil content.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

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 ...

Source: UkrAgroConsult