Indonesia scraps B50 biodiesel rollout amid constraints
The decision reflects ongoing technical limitations and funding pressures linked to the country’s biodiesel subsidy scheme.
Indonesia has abandoned its plan to introduce a mandatory B50 biodiesel blend this year, opting instead to maintain its existing B40 requirement, government officials confirmed. The decision reflects ongoing technical limitations and funding pressures linked to the country’s biodiesel subsidy scheme.
The B50 programme, a blend of 50% palm oil-based biodiesel and 50% conventional diesel, had been slated for launch in the second half of the year. Retaining the B40 mandate means the national blend will remain at 40%, reducing expectations of increased domestic palm oil absorption.
As the world’s largest palm oil producer, Indonesia’s biodiesel policy significantly influences global vegetable oil markets, with higher domestic consumption typically reducing export availability.
Deputy Energy and Mineral Resources Minister Yuliot Tanjung said that rising diesel output at the Balikpapan refinery ensures B40 remains sufficient for this year. Officials also noted that trials for require more time for technical assessment.
