Fuel Blending
Indonesia scraps plan to move to B50 blend target this year, says minister
This story was originally published at 14:03 IST on 14 January 2026
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MUMBAI – Indonesia has scrapped its plans to increase the mandatory biodiesel blend to 50% this year and decided to maintain the current blend of 40% palm oil-based fuel and 60% diesel, Deputy Energy Minister Yuliot Tanjung said on Wednesday, according to various media reports.
The decision to maintain B40 this year was taken as the government reviews the timeline needed to complete trials of B50 fuels, especially for trains, heavy equipment and machinery, energy ministry official Eniya Listiani Dewi told reporters on Wednesday.
The recent increase in Indonesia's diesel fuel production capacity was also a factor in the decision, Yuliot added.
The new timeline for B50 will be decided after the trials, she added.
"This year, the president's direction is to keep B40," Coordinating Economic Affairs Minister Airlangga Hartarto had said after an event Tuesday in Jakarta. "For B50, studies must continue on an ongoing basis."
Under B40 blending target, Indonesia, the world's largest palm oil producer, has mandated diesel fuel to contain 40% palm oil. The government has spoken about raising the figure to 50%.
Hartarto also said moving to a 50% blend would depend on price dynamics, including the spread between fuel oil, conventional diesel and palm oil prices in domestic and international markets. Technical studies and automotive trials will continue, he added, while the government monitors readiness across the supply chain, as per reports.
"The B50 policy is not cancelled," the minister affirmed. "The studies and vehicle tests are ongoing. Implementation depends on price scenarios and industry preparedness from upstream to downstream." End
Reported by Abhijit Doshi
Edited by Vandana Hingorani
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