The launch of Indonesia’s B50 biodiesel mandate will depend on the price gap between crude oil and crude palm oil, a senior official said on Tuesday according to Reuters.
Indonesia, the world’s largest producer of palm oil, previously said it would start its B50 mandate, which requires a 50-50 blend of palm-based fuel and diesel, in the second half of 2026. The current mandate calls for biodiesel that is 40% palm-based.
The country subsidises its biodiesel programme using proceeds from palm oil export levies. The size of the subsidy depends on the difference between crude oil and crude palm oil prices.
“This year, the guidance from the president is to maintain B40,” said Airlangga Hartarto, the coordinating minister for economic affairs. “For B50, reviews are being continuously conducted and we must monitor the difference between crude oil and crude palm oil prices.”
“We are preparing for (implementation) in the second semester, however under current price conditions, the president’s directive is (to maintain) B40, but be ready for B50,” he added.
