Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto has confirmed that Indonesia will maintain its mandatory biodiesel blending policy at B40 this year, as plans to move to B50 are still under further study.
Under the B40 mandate, biodiesel consists of a blend of 60 percent petroleum diesel and 40 percent palm oil-based biofuel.
Speaking to reporters in Jakarta on Tuesday, Hartarto said the transition to B50 requires comprehensive assessment, particularly of the price gap between fuel oil, petroleum diesel, and palm oil in both domestic and international markets.
He stressed that the B50 policy has not been canceled. Technical studies and automotive trials are continuing, while the government closely monitors price fluctuations and the readiness of the domestic industry from upstream to downstream.
Hartarto said the government is consistently calculating the price differential between biodiesel, petroleum diesel, and palm oil to ensure the fuel-blending policy remains balanced, safeguards energy supply, and supports national economic stability.
Preparations for the B50 mandate are still ongoing, he said, but implementation will depend on market developments. For now, President Prabowo Subianto has directed the government to maintain the B40 policy.
“We are preparing for the second half of the year, but based on current price conditions, the president’s directive remains B40, although we are ready to implement B50,” Hartarto said.
Indonesia began implementing the B40 biodiesel blending mandate in early 2025 as part of broader efforts to strengthen energy security and advance its green and sustainability agenda. The government has previously set a target to increase the mandate to B50 in 2026.
The policy aligns with the Asta Cita missions of the Prabowo Subianto administration, which place food and energy security among its top priorities.
