PALMOILMAGAZINE, JAKARTA – The Indonesian government has confirmed its readiness to implement the 50% biodiesel blend (B50) starting in 2026. This move is seen as a strategic milestone—not only for advancing decarbonization but also as a key step toward achieving national energy sovereignty.
Deputy Minister of Energy and Mineral Resources (ESDM), Yuliot Tanjung, expressed optimism following the successful implementation of B40, which has been in effect since early 2025. “Our FAME supply is ready to support B50 next year. Hopefully, we can officially launch it at the beginning of the year,” Yuliot said, as quoted by Antara via Palmoilmagazine.com on Saturday (May 17, 2025).
FAME (Fatty Acid Methyl Ester), the primary component of biodiesel derived from vegetable oil, plays a crucial role in the B50 policy. According to Yuliot, Indonesia’s FAME industry is now not only meeting domestic demand but also showing strong signs of expansion. “Producers have been given larger quotas this year and are increasing their investments,” he added.
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This industry readiness has multiple ripple effects. Beyond strengthening domestic energy capacity, the growing FAME production is stimulating downstream investment in the palm oil sector. The government reports that FAME producers are expanding production capacity and upgrading processing facilities to meet the demands of the upcoming B50 mandate.
Interestingly, earlier concerns about the need for new palm oil plantations have been addressed. Yuliot clarified that, based on coordination with the Ministry of Agriculture, current crude palm oil (CPO) supplies are sufficient—even without land expansion.
“With the ongoing replanting program, we can meet the demand. Land expansion may not even be necessary if replanting runs optimally,” he explained.
The B50 initiative aligns with President Prabowo Subianto’s directive to promote biofuel as part of Indonesia’s broader vision for energy security and self-reliance. The policy is expected to reduce dependence on imported diesel and reinforce national energy reserves.
For energy industry stakeholders, the shift to B50 presents an opportunity for innovation and for strengthening the domestic renewable energy ecosystem. With supportive policies and infrastructure in place, 2026 could mark a pivotal year in Indonesia’s journey toward a cleaner and more independent energy future. (P2)
