Jakarta. Indonesia's automotive industry has endorsed the nationwide rollout of B50 biodiesel after extensive vehicle testing found the higher palm oil blend safe for diesel engines, as the government pushes ahead with an ambitious program aimed at cutting fuel imports and boosting domestic palm oil consumption.

The Association of Indonesian Automotive Industries (Gaikindo) said automakers tested diesel vehicles running on B50—a blend of 50% palm oil-based biodiesel and 50 percent conventional diesel—for tens of thousands of kilometers.

"The results have been good," Gaikindo First Chairman Jongki D. Sugiarto told reporters in Jakarta on Monday. "Manufacturers prepared their vehicles for testing, and they were driven for tens of thousands of kilometers using B50. So far, it has been safe."

According to Jongki, the tests demonstrate that B50 can be used without causing significant engine performance or reliability issues, giving manufacturers confidence ahead of the nationwide rollout.

Indonesia recently became the first country to introduce the B50 blend on a national scale. The government has set a three-month transition period during which fuel stations are allowed to deplete existing B40 inventories before switching entirely to B50.

"All gas stations in the country should sell the B50 biodiesel by Oct. 1, 2026," Muhammad Qodari, head of the Presidential Communications Office, said in a recorded press briefing on Monday.

Under the new pricing scheme, subsidized B50 for passenger vehicles will remain at Rp 6,800 (about $0.38) per liter, unchanged from the previous BioSolar price. Non-subsidized B50 for industrial users will be priced at around Rp 15,000 to Rp 16,000 per liter, depending on market conditions.

State-owned energy company Pertamina is adjusting its supply chain to support the transition. President Director Simon Aloysius Mantiri has estimated the B50 mandate could reduce Indonesia's diesel imports by around 310,000 barrels per day.

Jongki said the success of the program would depend not only on vehicle compatibility but also on the readiness of upstream industries, particularly palm oil producers that supply the feedstock for biodiesel.

He said the policy would increase domestic absorption of crude palm oil, strengthening one of Indonesia's most strategic industries while reducing reliance on fossil fuels.

"The palm oil industry is a strategic sector that needs to be strengthened," Jongki said, adding that greater biodiesel consumption would help balance domestic palm oil supply and demand while creating added value for producers.

Gaikindo said it fully supports the nationwide implementation of B50 but stressed that a smooth transition will require close coordination among the government, automakers, fuel producers and the palm oil industry.

Some energy analysts, however, have urged the government to carefully manage the transition, warning that adequate feedstock supply, fuel distribution and quality control will be essential to avoid disruptions as Indonesia adopts the world's highest mandatory biodiesel blend.

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