Indonesia Plans B50 Biodiesel Mandate for 2026 Palm Oil Usage May Hit 19 Million Kiloliters

Indonesia is preparing to raise its mandatory palm oil blend in biodiesel to 50% (B50) starting next year, according to senior energy official Eniya Listiani Dewi. The current blend stands at 40% (B40), with the government aiming to further reduce dependence on imported fossil fuels by ramping up domestic palm oil usage.

Testing for the new B50 standard will begin soon, with trials expected to last up to eight months. As the world’s largest palm oil exporter, Indonesia’s move to expand biofuel use often triggers global market concerns over supply and pricing.

For 2024, palm oil allocated for the B40 program reached 15.6 million kiloliters, up from 13.2 million kiloliters last year. Industry estimates suggest the B50 mandate could push annual palm oil fuel demand to 19 million kiloliters, potentially tightening export availability and impacting global vegetable oil prices.