Indonesia has set its biodiesel production quota for 2026 at 15.646 million kiloliters, Ernest Gunawan, secretary general of the Indonesian Biofuel Producer Association or APROBI, said Dec. 23, largely unchanged from 2025.
The quota reflects the 2025 target of 15.62 million kiloliters under the current biodiesel blending mandate of 40% or B40 program and has raised questions from traders and analysts about Indonesia’s ability to meet its ambitious B50 goal set for 2026, as outlined in government and presidential announcements.
The 2026 mandate is just 29,800 kiloliters higher than the 2025 mandate. This indicates minimal growth, and the demand increase will mainly come from a higher blending mandate rather than just allocation growth, an India-based trader said Dec. 23.
Indonesia is the world’s largest palm oil producer and also has the highest blending target for palm oil-based biodiesel.
Palm oil-based biodiesel is a key component of Jakarta’s plan for energy self-sufficiency. President Subianto said Dec. 16 that the government will begin by ending diesel imports from 2026, followed by a phased reduction of other fuel imports through 2030.
