Minister says Indonesia is on track to launch B50 Biodiesel Programme on July 1.
Energy Minister Bahlil lahadalia said on Thursday that Indonesia was on track to launch the?B50 mandate, which blends 50% palm oil-based Biodiesel and?50% conventional Diesel - by July 1. Fuel tests had shown positive results.
Indonesia has re-invigorated its plan to increase the biodiesel percentage to 50% in March from the current level of 40%, as a reaction to the disruptions in oil supplies that resulted from the U.S. attacks and Israel's attack on Iran.
Bahlil said to reporters that "tests were carried out by energy ministry team, and the results are encouraging... B50 implementation is scheduled to begin on July 1, 2026."
He added, "We will therefore reduce or stop diesel imports - especially cetane48 gasoil."
A ministry official estimated that the biodiesel subsidies for 2026 would be lower than budgeted, due to the recent surge in crude oil prices.
Eniya Listeiani Dewi said that biodiesel subsidies would drop from 47 trillion rupiah (2.64 billion dollars) to 32 trillion.
Indonesia uses proceeds from a tax on palm oil exports to subsidise its biodiesel mandate.
Palm oil is usually sold at a higher price than gasoil. However, the Middle East war has caused crude oil prices to rise and palm oil to become cheaper.
Recent parliamentary hearings revealed that the Indonesian plantation fund BPDP - which is responsible for the palm export levy - collected '17.4 trillion rupiah or 64% of the full year target of 26,84 trillion rupiah.
Eniya stated that the energy ministry was preparing regulations to implement?B50. This includes an additional biodiesel?quota needed to meet the mandate.
The government allocated previously 15,65 million kilolitres palm-based diesel to its B40 mandate.
(source: Reuters)
