JAKARTA, INDONESIA / RankWire.AI / – Indonesia expects its B50 biodiesel mandate to save 170 trillion rupiah, or about US$10.8 billion, in foreign exchange during 2026. The Energy and Mineral Resources Ministry linked the savings to lower imports of petroleum diesel. B50 requires an equal blend of conventional diesel and palm-based biodiesel. The nationwide rule covers road vehicles, industrial equipment, ships, trains and power plants. It represents Indonesia’s highest mandatory biodiesel blend to date.
The government began nationwide B50 distribution on July 1 and held the formal launch on July 9 in Karawang, West Java. The programme replaced the B40 standard introduced in 2025. B40 contained 40% fatty acid methyl ester, commonly called FAME, and 60% petroleum diesel. B50 raises the FAME portion to 50%. Fuel suppliers may continue using remaining B40 stocks through September while they complete the changeover across Indonesia.
Under the previous B40 programme, the ministry estimated foreign exchange savings at Rp133.3 trillion. The B50 projection raises that figure by Rp36.7 trillion. The government also expects the new blend to displace about 4 million kilolitres of fossil diesel. State-owned Pertamina manages blending operations and supports storage, transport and nationwide supply. The company’s distribution network connects production facilities with retail and industrial fuel users across the country.
Higher blend lifts palm oil requirements
Indonesia expects the B50 mandate to require between 16.7 million and 18 million kilolitres of biodiesel in 2026. The earlier B40 allocation stood at 15.64 million kilolitres for the same year. Government calculations also place crude palm oil demand between 15.2 million and 16.3 million tonnes. The volumes support fuel use across transport, mining, agriculture, shipping, rail and electricity generation. Producers must supply the renewable component under national quality and blending standards.
The Energy and Mineral Resources Ministry estimates that B50 will add Rp23.49 trillion in value to the palm oil industry. Its assessment also associates the programme with about 2.1 million jobs. Those roles span plantations, processing plants, transport services, storage facilities and fuel distribution. The ministry projects emissions reductions of up to 44.46 million tonnes of carbon dioxide. Its comparable estimate for B40 was 39.66 million tonnes.
Technical trials cleared nationwide use
Government testing covered passenger cars, trucks, mining machinery, farm equipment, locomotives, ships and electricity plants before the launch. Light vehicles completed trials over 50,000 kilometres. Heavy vehicles covered 40,000 kilometres, while mining equipment operated for about 1,000 hours. The tests found no major engine problems connected to B50 fuel quality. Authorities also confirmed that the tested blend met government specifications and technical requirements set by vehicle manufacturers.
Indonesia has increased its biodiesel mandate through several stages since 2008. The first national blend, B2.5, contained 2.5% biodiesel. The country adopted B10 in 2013, B20 in 2018 and B30 in 2020. It later introduced B35 in 2023 and B40 in 2025. Each increase required adjustments to production, fuel standards, storage and distribution. B50 now places palm-based biodiesel and conventional diesel in equal shares throughout the national programme.