Indonesia Decides to Postpone B50 Plan

15-Jan-2026 09:30 PM

Jakarta. Indonesia had initially planned to implement a rule mandating a 50 percent blend of palm oil in biodiesel production (the B50 program) starting in 2026, but this plan has now been postponed. Currently, the B40 program, which mandates a 40 percent palm oil blend, is in effect, having been launched last year.

Indonesia's Deputy Energy Minister stated that the government has decided to maintain the current level of 40 percent palm oil-based fuel blend and 60 percent diesel.

The decision to continue with the B40 program was made after the Indonesian government reviewed the timeline required for completing trials of the B50 fuel.

The government wants to assess the impact of using a 50 percent palm oil blend in trains, heavy equipment, and machinery.

Testing is necessary, and the B40 program will remain in place until positive results from these trials are obtained.

It is worth noting that Indonesia is the world's largest producer and exporter of palm oil, while India remains its biggest buyer. Indonesia has seen a significant increase in its diesel fuel production capacity in recent years,

thus reducing the perceived need for a higher palm oil blend. The postponement of the B50 program eliminates the possibility of a reduction in Indonesia's exportable stock of palm oil.