Indonesia will continue implementing its mandatory B40 biodiesel blending policy this year as the government completes further studies for a potential transition to B50. Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the B40 mandate, which blends 60% petroleum diesel with 40% palm oil-based biofuel, remains the most balanced option under current market conditions. The government is carefully assessing price dynamics between biodiesel, petroleum diesel, and palm oil in both domestic and global markets to ensure energy security and economic stability.
The transition to B50 remains a strategic objective and has not been canceled, with ongoing technical evaluations and automotive trials indicating readiness across the supply chain. The government continues to monitor industry preparedness from upstream to downstream while aligning policy decisions with market developments. Maintaining B40 at this stage reflects a prudent and adaptive approach that supports Indonesia’s sustainability goals, strengthens energy resilience, and aligns with national priorities on food and energy security under the current administration.
