Indonesia plans to move to B60 in 2027, boosting crude palm oil consumption

Indonesia is preparing to move to the B60 biodiesel blend in 2027 and is assessing the crude palm oil (CPO) supplies and production capacity required for the programme. President Prabowo Subianto previously said that B60 would be the next stage following the rollout of B50.

To implement the new blend, the government needs to secure sufficient CPO supplies and expand fatty acid methyl ester (FAME) production capacity, as FAME is the main component of palm-based biodiesel. Additional capacity will be required to support B60 use in both subsidised and commercial fuel segments.

The final composition of B60 has not yet been determined. The Energy Ministry is considering adding 10% hydrotreated vegetable oil (HVO) to the blend. However, HVO costs around 1.5–2 times more than FAME, and testing of this option is still at an early stage.

Indonesia’s BPDPKS agency has been tasked with assessing the country’s FAME requirements for the B60 programme. The study is expected to be completed by December 2026, after which the government will be able to determine the parameters of the new fuel blend and required production volumes.

The transition to B60 would further increase domestic use of palm oil for biofuel production. Expansion of the biodiesel programme could support domestic CPO demand in Indonesia and reduce the volume of feedstock available for other uses.

Tags: Indonesia, Crude palm oil, biodiesel, palm oil, biofuel, CPO