Wedoany.com Report-Aug. 11, Indonesia has outlined plans to raise the mandatory palm oil content in its biodiesel to 50% under the B50 program, with implementation planned for 2026, as announced by Eniya Listiani Dewi, a senior energy ministry official, on August 11, 2025. The program is not expected to start in January, pending further preparations.

A worker at state-owned Pertamina, the country's main retailer of subsidised fuel, fills a vehicle at a petrol station in Jakarta November 17, 2014.

The country currently mandates a 40% bio-content (B40) in biodiesel to reduce reliance on imported fossil fuels. Transitioning to B50 requires technical tests, which Eniya noted: “The minister and deputy minister have set a plan for 2026 (implementation), but the month has not been decided yet.” These evaluations, potentially lasting eight months, will shape the final timeline, though testing start dates remain unclear.

As the world’s top palm oil exporter, Indonesia’s increased use of palm oil for energy may impact global vegetable oil prices by reducing exportable supply to meet domestic energy needs. In 2025, the B40 program utilized 15.6 million kilolitres of palm oil fuel, up from 13.2 million kilolitres the previous year. The biodiesel producers’ group APROBI estimates that B50 could demand up to 19 million kilolitres annually, indicating a significant increase in domestic consumption.