Indonesia to stop diesel imports by 2026

Indonesia plans to halt diesel fuel imports by the second half of 2026 following the government’s decision to implement the B50 biodiesel mandate, Energy and Mineral Resources Minister Bahlil Lahadalia has said.

B50 is a renewable diesel blend consisting of 50% crude palm oil (CPO) and 50% conventional fossil diesel. Indonesia is currently conducting the final phase of road testing the B50 blend across various vehicles and equipment.

The testing period is expected to take around six to eight months and includes trials on ship engines, trains, heavy equipment, and other machinery.

“Once the tests are completed and clear, we will decide to implement B50,” the minister said, as cited by Antara.

According to him, the B50 program is a strategic step towards achieving national energy sovereignty, with the ultimate goal of eliminating diesel imports. The shift to B50 not only helps Indonesia reduce its dependence on imported fuels but also maximizes the potential of domestically produced palm oil, strengthens farmers’ livelihoods, and ensures energy security.

During the 2020-2025 period, the use of biofuels helped Indonesia save $40.71 billion. The implementation of B50 from 2026 is expected to generate additional annual savings of about $10.84 billion.

At present, Indonesia still imports around 4.9 million kilolitres of diesel oil, equivalent to 10.58% of total domestic demand. Once B50 is fully rolled out, this imported volume will be completely replaced by domestic supply.