The Indonesian government began enforcing the 50 percent biodiesel blend mandate (B50) for all diesel fuel on 1 July 2026. The Institute for Essential Services Reform (IESR) called for a recalculation of the policy's costs and risks.
Ministerial Decision of the Ministry of Energy and Mineral Resources Number 257.K/EK.01/MEM.E/2026 signed by Minister Bahlil Lahadalia on 17 June 2026 sets a minimum 50 percent biodiesel blend target for all diesel-type fuels. The rule replaces the previous B40 provisions and takes effect on 1 July 2026.
IESR assessed that B50 implementation could reduce diesel imports in the short term but carries cross-sector consequences. IESR Chief Executive Officer Fabby Tumiwa stated the government needs to recalculate impacts on costs, CPO supply, food prices, small farmers, and the environment.
The Land Transportation Organization (Organda) said transport operators are not ready. DPP Organda Chairman Adrianto Djokosoetono noted that current fleets are not designed for B50, which will raise engine maintenance costs and filter replacement frequency.
