Jakarta. Indonesia plans to distribute 15.6 billion liters of biodiesel in 2026, a move expected to reduce fossil diesel imports by Rp 139 trillion ($8.3 billion), according to the Energy and Mineral Resources Ministry.

The government is currently implementing the mandatory B40 program, which requires diesel fuel supplied under government schemes to contain a 40% biofuel blend, up from a 35% blend last year. Beginning in the second half of 2026, authorities aim to raise the blend to 50% under the planned B50 program.

“The implementation of the mandatory biodiesel program in 2026 will be supported by collaboration between 32 fossil fuel processing companies and 26 biofuel producers appointed by the government,” said Eniya Listyani, director general of renewable energy at the ministry, in a statement in Jakarta.

Of the total biodiesel volume earmarked for distribution, 7.45 billion liters will be blended into subsidized diesel fuel, while 8.19 billion liters will be allocated for non-subsidized fuel.

Eniya said the allocation strategy is designed to reduce Indonesia’s dependence on imported fossil diesel, strengthen national energy security, expand the use of domestic energy resources, and support the country’s greenhouse gas emissions reduction targets.

Based on ministry estimates, the 2026 biodiesel program is expected to generate Rp 21.8 trillion in added value for the palm oil industry, save Rp 139 trillion in foreign exchange from reduced diesel imports, create more than 1.9 million jobs, and cut greenhouse gas emissions by around 41.5 million tons of CO2 equivalent.