Diesel Imports to Cease in Indonesia Upon Implementation of B50 Program

21-Apr-2026 04:34 PM

Surabaya. A decision has been taken to implement the B50 program in Indonesia starting July 1, 2026, under which it will become mandatory to utilize 50 percent palm oil in the production of biodiesel.

Following this, domestic biodiesel production in Indonesia is expected to surge to such an extent that it will easily meet the country's internal demand and requirements, rendering the need for diesel imports from abroad either negligible or entirely unnecessary. Under the B50 program, the biodiesel produced will consist of a 50 percent diesel component and a 50 percent component derived from Crude Palm Oil (CPO).

Indonesia's Minister of Agriculture has stated that the decision to implement the B50 program from July 1, 2026, has been finalized, and consequently, diesel imports will cease thereafter.

The government is actively striving to bolster national self-reliance in energy sources, and as part of this initiative, palm oil is being utilized as an alternative fuel.

According to the Agriculture Minister, palm oil can be processed not only into diesel but also into gasoline and ethanol—sectors that are currently witnessing rapid development.

This represents a future energy solution for Indonesia, given that it is derived from palm oil. Indonesia stands as the world's leading producer and exporter of palm oil. While the utilization of 50 percent of its output for biodiesel production will result in a reduction in Indonesia's exportable palm oil stocks—thereby potentially impacting global market prices—it will, in return, provide substantial assistance to the nation in ensuring its internal energy security.