Jakarta. World’s largest palm oil producer Indonesia is planning to set up a watchdog to oversee the distribution of the B40 biodiesel, according to a senior government official.

B40 is a type of biodiesel that uses a 40 percent palm oil blend. Indonesia has been gradually increasing its blend over the past years as a means to grow its green energy source. Most recently, Indonesia officially raised the palm oil blend mandate from 35 percent to 40 percent starting this year.

Eniya Listiani Dewi, a director-general for renewables at the Energy Ministry, said that the government planned on deploying a special team to monitor whether the distributed biodiesel truly complies with the B40 mandate. This includes making sure whether the biofuel has a 40 percent palm oil blend. This team consists of the ministry’s officials as well as the oil palm plantation funding agency BPDPKS.

“We will deploy a team to monitor the B40 program on the ground starting next week,” Eniya told reporters on the sidelines of the 2025 Beritasatu Economic Outlook forum in Jakarta on Thursday.

She added: “So we will really inspect the distributed biodiesel’s density, water content, and color.”

Eniya, however, denied that the government had encountered some problems in relation to the biodiesel program, thus prompting the ministry to set up the watchdog. “No, there were no problems in the past. But since the B40 program does not have incentives, we feel like we should be one step ahead,” she said.

Indonesia plans to produce 15.6 million kiloliters of B40 biodiesel for the entirety of 2025. Government estimates show that Indonesia can save up to Rp 147.5 trillion or approximately $9 billion in foreign exchange once the B40 mandate is in place as the country cuts down on its diesel imports.

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