PT Kilang Pertamina Internasional (PT KPI), a subsidiary of Indonesian state-owned Pertamina, was said to have started producing B40 biodiesel B40 at least at its Plaju refinery located in South Sumatra and its Kasim refinery in West Papua.

B40 consists of 60% diesel oil and 40% biofuels made from palm oil. B35 is currently in general use.

The government initially planned to mandate the use B40 from the beginning of this year, but as of February, market participants are expecting the implementation from March at the earliest. The delay is seen to be due to Insufficient palm oil supply and the production system being not yet in place.

The Plaju refinery targets to produce 119,240kl of B40 per month and the Kasim refinery targets to produce 15,898kl per month. The government aims to produce a total of 15.62 mil kl during 2025. The government is promoting domestically produced biodiesel in order to reduce diesel imports and improve national finances.