Indonesia plans to raise the mandatory palm oil content in biodiesel from 40% (B40) to 50% (B50) starting in 2026, but a January rollout is improbable. According to senior energy ministry official Eniya Listiani Dewi, the timeline will depend on technical testing, which could take up to eight months. The exact launch month has not been determined, and it remains unclear when testing will begin. The policy aims to reduce dependence on imported fossil fuels by increasing palm oil use in domestic energy production.
The move could impact global palm oil prices, as Indonesia is the world’s largest exporter and may allocate more supply for local needs. This year, Indonesia allocated 15.6 million kilolitres of palm oil fuel for the B40 program, compared to 13.2 million kilolitres in 2024. The B50 program may require up to 19 million kilolitres annually, according to biodiesel producers group APROBI.
