Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, is optimistic that Indonesia will be free from diesel fuel imports in 2026 in line with the government’s determination to impose the 50 percent-blended biodiesel (B50) that year.
“B40 has been in effect since January 1, 2025. While it is running, the government is preparing to implement B50 in 2026. If this is successful, we will certainly not need to import diesel fuel in 2026. This is part of national energy security according to the President’s direction,” Bahlil told a media conference on Friday, January 3, 2025.
The implementation of B40 in 2025 will increase the biodiesel quota to 15.6 million kiloliters (KL), up 20 percent from the realization of B35 in 2024 which reached 12.98 million KL.
“We see this increase as part of an effort to reduce dependence on diesel fuel imports,” Bahlil said.
State-owned energy company PT Pertamina has stated its readiness to support the mandatory B40 program. Pertamina spokesman, Fadjar Djoko Santoso, said the company has prepared two refineries to produce B40 fuel, namely Plaju Refinery Unit III in Palembang and Kasim Refinery Unit in Papua. These two refineries have previously produced B35 fuel.
Legal umbrella
Fadjar cited that Pertamina is waiting for the legal umbrella for the implementation of the B40 program.
“Usually there will be a transition period from the time the regulation is issued until the product is ready for sale. In the mean time, Pertamina continues to ensure the readiness of production facilities so that the B40 program will run accordingly to target,” he said.
Energy transition
Bahlil emphasized that the biodiesel policy will not only strengthen the country’s energy security, but also support environmental sustainability through carbon emissions reduction.
He cited that the government is working to improve the quality of biodiesel, especially regarding the water content in the fuel mixture.
“We are currently preparing measures to improve the water content in biodiesel. The target is to bring the water content to the minimum by improving specifications of transportation vessels,” he said.
Currently, water content in biodiesel is at 320 ppm, but measures are taken to increase fuel efficiency and durability. The implementation of B50 in 2026 is expected to be a strategic step to realize energy security and reduce dependence on fossil fuels.
