Mobility Plaza (13/08/2025) - Indonesia plans to raise its biodiesel palm oil blend to 50% under the B50 program, but a January 2026 rollout is unlikely as tests could take up to eight months, officials say.

Indonesia has reaffirmed plans to raise the mandatory palm oil content in biodiesel to 50% under its B50 program, but officials say the launch will likely be delayed beyond January due to ongoing technical preparations, Reuters reported.

The Southeast Asian nation currently enforces a 40% palm oil blend (B40) in biodiesel as part of efforts to curb reliance on imported fossil fuels. Senior energy ministry official Eniya Listiani Dewi told reporters on Monday that several tests for the higher blend are still required and could take up to eight months to complete.

“The minister and deputy minister have set a plan for 2026 implementation, but the exact month is yet to be decided,” Dewi said, adding that the schedule will depend on how quickly the technical trials progress.

It remains unclear when testing for the B50 blend will begin. The government’s push to increase palm oil usage in energy production has previously impacted global vegetable oil markets, as the world’s largest palm oil exporter diverts more supply for domestic consumption, reducing export volumes.

This year, Indonesia allocated 15.6 million kilolitres of palm oil for the B40 program, up from 13.2 million kilolitres in 2023. According to the biodiesel producers’ association APROBI, the planned B50 mandate could require up to 19 million kilolitres annually.

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