Indonesia to launch mandatory B50 biodiesel from July 1
Indonesia plans to accelerate the rollout of a mandatory 50% biodiesel blend (B50) starting July 1, 2026. The program aims to reduce reliance on fossil fuels and ease fiscal pressures amid rising global oil prices.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the state energy company Pertamina is ready to implement the blending program. He noted that the B50 mandate could reduce fossil fuel consumption by 4 million kiloliters annually.
During the first six months of implementation, the policy is expected to generate savings of up to Rp 48 trillion (around $2.8 billion) through reduced fossil fuel use and lower biodiesel subsidy spending.
In addition, the government will limit purchases of subsidized fuel to 50 liters per vehicle per day starting April 1, with exemptions for public transportation.
Analysts say these measures are designed to strengthen the country’s energy security and promote the use of renewable fuels while controlling government spending on energy subsidies.
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