Government Delays B50 Biodiesel Mandate, Keeps B40 in 2026

JAKARTA, Investortrust.id — Indonesia delays the mandatory B50 biodiesel rollout on Wednesday, Jan 14, 2026 in Jakarta to safeguard energy supply stability while extending technical evaluations, a move that keeps the B40 blend in place and postpones higher palm oil usage in fuel.

The decision was confirmed by the Ministry of Energy and Mineral Resources, which said the government prioritized system readiness and comprehensive testing before increasing the biodiesel blend.

Deputy Energy Minister Yuliot Tanjung said the administration focused on maintaining fuel reliability while reviewing technical preparedness across sectors.

Officials said B50 road tests that began in early December 2025 were still under evaluation, particularly for rail transport, heavy equipment, and industrial machinery.

Energy Ministry official Eniya Listiani Dewi said the timeline remained under review until all trials were completed and assessed.

Beyond technical issues, rising domestic diesel production capacity was cited as an additional factor in delaying the higher blend mandate.

Separately, the government announced a higher export levy on crude palm oil to strengthen funding for biodiesel subsidies and sustainability programs.

Eddy Abdurrachman, president director of Palm Oil Plantation Fund Management Agency (BPDPKS), said the levy on CPO exports would rise to 12.5 percent starting March 1, 2026.

Indonesia currently charges a 10 percent export levy on CPO, while refined palm oil products will also see a 2.5 percentage point increase.

The levy hike was aimed at reinforcing plantation funds to support long term palm oil sustainability and future green energy subsidies.

Indonesia has positioned biodiesel as a cornerstone of its energy sovereignty strategy to curb diesel imports and reduce emissions.

Since progressing from B15 to B40, the country has emerged as a global leader in palm oil based biofuels.

However, the transition to B50 has faced challenges, including engine compatibility, supply balance between food, exports, and energy, and subsidy sustainability.

Export levies managed by BPDPKS have played a key role in bridging the price gap between biodiesel and fossil diesel, keeping green fuel competitive domestically.