B50 Program Likely to be Implemented in Indonesia from July 1

07-Apr-2026 12:18 PM

Jakarta. In Indonesia—a nation situated in Southeast Asia—the "B50 Program," a regulation mandating the use of 50 percent palm oil in biodiesel production, is likely to come into effect on July 1, 2026. Positive results have emerged from trials conducted over the past six months regarding this initiative; consequently, the government is now seriously considering its implementation.

The B50 blend consists of 50 percent Crude Palm Oil (CPO) and 50 percent fossil diesel. For the past six months, trials involving its use in heavy machinery, ships, trains, trucks, and similar vehicles have been underway; as no complaints regarding any malfunctions or issues have been received from any quarter, the government is now poised to grant official regulatory approval for its usage.

According to the Energy Minister, the program will be finalized shortly with this objective in mind and could be implemented starting July 1.

Trade analysts suggest that following the implementation of this program in Indonesia, the country's exportable stock of palm oil will decrease, potentially leading to a rise in its price. This development is expected to directly benefit Malaysia's palm oil industry.