Indonesia advances plans for 50% palm-oil biodiesel (b50) following lab tests

Indonesia is moving closer to introducing biodiesel with a 50% palm-oil blend (B50) after completing laboratory tests, an official from the Energy Ministry said on Tuesday. The country aims to implement the new fuel standard next year to cut reliance on imported fossil fuels.

Currently, palm-oil biodiesel is blended at 40% (B40), but the government seeks to increase the proportion to 50% to support energy independence.

The laboratory tests, which concluded in August, involved running an engine on B50 fuel. The next step will involve road trials as well as tests on diesel-powered non-automotive machinery, according to Edi Wibowo, the ministry’s bioenergy director. “Based on the test results, we will proceed to road tests and testing on other diesel-powered equipment,” he told, noting that the exact timing for the road tests is yet to be finalized.

Indonesia plans to make B50 mandatory in 2026, though implementation in January is considered unlikely, a senior energy ministry official said in August.

The adoption of B50 would require 20.1 million kilolitres of palm-oil biofuel annually for blending with regular diesel, up from 15.6 million kilolitres needed for B40, according to ministry data.

This step reflects Indonesia’s ongoing efforts to expand renewable energy use and reduce dependency on imported fuels while supporting its domestic palm oil sector.

Tags: Indonesia, biodiesel, palm oil