Indonesia aims to end diesel imports by 2026

The Indonesian government is preparing to implement the mandatory 50% biodiesel (B50) program in 2026 to stop diesel imports, according to Minister of Energy and Mineral Resources Bahlil Lahadalia.

As part of the energy transition program, the government will start implementing the mandatory B40 this year while preparing for the implementation of B50 next year.

He said that the B50 program aligns with President Prabowo Subianto’s directive to achieve energy security.

He added that the implementation of B50 will increase Indonesia’s energy reserves and support the goal of increasing its ability to meet domestic energy needs and reduce imports.

Meanwhile, Deputy Minister Yuliot Tanjung said that the policy of mandatory B40 biodiesel use will be implemented fully in February this year.

B40 is a mixture of 60% diesel fuel and 40% biofuel made from palm oil. Although B40 became mandatory on January 1, the program is still in a transition phase lasting approximately 1.5 months, Tanjung noted. During this period, remaining fuel stocks will be utilized, and technologies will be updated.

He added that the first phase of the B40 program is expected to produce 15.6 million kilolitres of biodiesel, with production continuing in stages throughout the year.