Indonesia is planning to introduce a B50 biodiesel mandate by 2028, which would require diesel fuel to contain 50% palm oil-based biofuel. The move is aimed at reducing reliance on imported fossil fuels while strengthening national energy security. The country, already implementing a B40 blend, sees the higher mix as a strategic step to expand domestic energy use and cut import costs.
The policy is also expected to support Indonesia’s palm oil industry and stabilize global supply dynamics, as more production is diverted for domestic consumption. However, implementation depends on factors such as global crude oil and palm oil prices, as well as technical readiness and subsidies. Authorities continue to evaluate timelines and funding mechanisms before fully rolling out the B50 mandate.