B50 to take effect July 1, govt targets Rp157 trillion savings
Biodiesel allocation for 2026 rises to 17.6 million KL, while final tests show 80-90% of parameters meet standards.
The government aims to roll out the B50 biodiesel mandate on July 1, 2026 for diesel fuel, with projected foreign-exchange savings of Rp157.28 trillion this year. The Energy and Mineral Resources Ministry said the policy will reduce diesel imports and cut dependence on fossil fuels. Energy ministry spokesman Dwi Anggia said road tests since April showed the B50 blend is safe for diesel vehicles, with fuel consumption still within manufacturer standards and carbon monoxide and opacity emissions remaining within limits. The 2026 biodiesel distribution target was also raised from 15.64 million kiloliters to 17.60 million kiloliters. In addition, the government estimates B50 could add Rp24.68 trillion in CPO value, absorb about 2.21 million workers, and cut greenhouse-gas emissions by 46.72 million tons.