Indonesia Sticks to its B50 Implementation Target Next Year

The government has stated that there is no change on the implementation of the mandatory program of biodiesel 50 percent (B50), which is an upgrading of the current B40 mandatory program, and it will stick to the target of starting its implementation early in 2026, according to a news report posted in the Indonesian Palm Oil Association (GAPKI) website. 

Deputy Minister of Energy and Mineral Resources (ESDM), Yuliot Tanjung said that the success of the current B40 program implementation is the basis for upgrading it to B50 program early next year. He said they had conducted an evaluation of the B40 program implementation during the last few months, and it turned out that the distribution of B40 under Public Service Obligation (PSO) and non-PSO has been proceeding well as expected.  

According to Yuliot, the B50 program is also supported with the availability of FAME (Fatty Acid Methyl Ester from crude palm oil –CPO), which is supplied through a number of biodiesel producing companies. He said that the implementation of B50 will not require expansion of oil palm plantations.  His ministry and the agriculture ministry are coordinating to ensure the supply of crude palm oil will still be enough for B50 implementation.  However, if upgrading the mandate further to B60, it may need expansion of existing plantations to meet increased demand for CPO.