Minister says Indonesia is on track to reach B50 biodiesel by 2026, reducing gasoil imports.

Indonesia will make B50 biodiesel, which is 50% palm oil based biofuel (B50), mandatory by 2026 to reduce gasoil imports. This was announced by the country's energy minister.

Indonesia, the world's largest palm oil producer, has set a biofuel content requirement of 40%. It is now working to increase palm oil to the blend in order to reduce its dependence on fossil fuel imports.

In a late-night statement on Tuesday, Minister Bahlil lahadalia stated that the government was planning to "push for B50" by 2026 in an effort to stop gasoil exports.

Last month, he had stated that Indonesia could raise the

Mandatory mix of 45%

Before shifting to B50.

The government

Complete laboratory tests

An official from the Energy Ministry said that road tests will be conducted on the B50 mixture in August.

According to data from the energy ministry, adopting B50 requires 20.1 million kilolitres per year of palm oil-based biomass for mixing with petroleum diesel. This compares with 15.6 million KL when using B40.

Indonesia's plans for expanding the use of palm oils as domestic energy affects global prices of vegetable oil because it causes concern that the world's largest palm oil exporter may have less to send overseas.

(source: Reuters)