The Energy and Mineral Resources (ESDM) Ministry of Indonesia has started technical tests related to the implementation of 50% biodiesel fuel (B50). ESDM Minister Bahlil Lahadalia made this announcement on Feb 18. The tests will take about six months and the trial will cover several sectors such as transportation fuels on land and sea and in agriculture.

B50 consists of 50% diesel oil and 50% biofuel made from palm oil. The Indonesian government is aiming to introduce B50 in 2026. B35 is currently widely used in the country and B40 is scheduled to be introduced in March.

Indonesia's biodiesel production was 13.15 million kiloliters in 2024, exceeding the initial target of 11.30 million kiloliters. The government's target for 2025 is 15.62 million kiloliters. The government is actively promoting biodiesel not only as an environmental measure to reduce carbon dioxide emissions, but also to reduce imports of diesel oil and improve the trade balance by increasing the market share of domestically produced biodiesel. Minister Lahadalia said that if B50 becomes widely used, there will be no need to import diesel oil.