InfoSAWIT, JAKARTA - The Indonesian government has officially announced the implementation of a biodiesel blend of 40% palm oil-based biodiesel (B40) mixed with diesel fuel, effective January 1, 2025. This decision was made public by the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, during a press conference at the ESDM Ministry office in Jakarta on January 3.
"The ESDM Ministry has just concluded an internal meeting to discuss biodiesel matters in detail. We have decided to increase the biodiesel blend from B35 to B40, and today we announce that it will take effect starting January 1, 2025," Bahlil stated in an official statement obtained by InfoSAWIT on January 4, 2025.
According to Bahlil, this initiative aligns with President Prabowo Subianto's agenda for energy resilience and self-sufficiency, as well as the government's target to achieve net-zero emissions by 2060. The government is also preparing plans to further increase the blend to B50 by 2026.
"If this goes well, under President Prabowo's direction, we will push for the implementation of B50 in 2026, and if we achieve this, our imports of diesel fuel will, God willing, be eliminated by 2026. Thus, this mandatory biodiesel program is part of the President's directive on energy resilience and reducing imports," Bahlil added.
Eniya Listiani Dewi, the Director General of New Renewable Energy and Energy Conservation (EBTKE), revealed that for 2025, the government has allocated 15.6 million kiloliters (kl) of B40 biodiesel, with 7.55 million kl designated for Public Service Obligation (PSO) and 8.07 million kl for non-PSO.
The implementation of the mandatory B40 program is outlined in the Minister of ESDM's Decree No. 341.K/EK.01/MEM.E/2024 regarding the Utilization of Biodiesel as a Blend for Diesel Fuel, financed by the Palm Oil Plantation Fund Management Agency at a rate of 40%. The distribution of biodiesel will be supported by 24 biofuel companies, two fuel companies distributing B40 for both PSO and non-PSO, and 26 fuel companies specifically distributing B40 for non-PSO. (T2)
