Indonesia to Launch Biodiesel Mandate with 50% Blend from July 1
Jakarta. Indonesia plans to accelerate the rollout of a 50% biodiesel blend (B50) starting July 1, as part of efforts to reduce reliance on fossil fuels and ease fiscal pressures amid rising global oil prices.
Coordinating Minister for Economic Affairs Airlangga Hartarto said on Tuesday that state energy firm Pertamina is ready to implement the program.
“The government will implement B50 starting July 1, 2026, and Pertamina is prepared to carry out the blending, which could reduce fossil fuel consumption by 4 million kiloliters annually,” Airlangga said at a press conference streamed live on the government's YouTube channel.
Within the first six months of implementation, the policy is expected to generate savings of up to Rp 48 trillion ($2.8 billion) through reduced fossil fuel use and lower biodiesel subsidy spending, he added.
In a related measure, the government will also limit purchases of subsidized fuel to 50 liters per vehicle per day starting April 1, with exemptions for public transportation.
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