Indonesia’s Ministry of Energy and Mineral Resources is strengthening national energy resilience by expanding its mandatory biodiesel program under the 2026 National Energy Security Strategic Initiative. The policy aims to reduce fuel imports, maximize domestic energy utilization, and generate long-term economic and environmental benefits. Biodiesel adoption has shown steady growth, rising from 9.3 million kiloliters in 2021 (B30) to 13.2 million kiloliters in 2024 under the B35 mandate. In 2025, the implementation of B40 further boosted domestic biodiesel consumption to 14.2 million kiloliters, achieving 105.2% of the annual target and reducing diesel imports by approximately 3.3 million kiloliters.
The government confirmed that enhanced refinery capacity, including the Refinery Development Master Plan (RDMP) in Balikpapan, has resulted in a surplus diesel supply of around 1.4 million kiloliters. This surplus supports Indonesia’s goal to fully stop diesel imports by 2026. Beyond diesel, the government is also preparing to eliminate imports of medium- and high-octane gasoline (RON 92, 95, and 98) by 2027, while surplus diesel will be converted into aviation fuel to reduce avtur imports. In parallel, fuel tests for higher biodiesel blends, including B50, are underway to support future policy expansion while ensuring technical reliability, economic feasibility, and infrastructure readiness.
