The Ministry of Energy and Mineral Resources (MEMR) in Indonesia decided to introduce bio-diesel B50 as a fuel for land transportations in 2026. The B50 usage demonstration test has been completed. The Indonesian government mandated the use of B40 which is a mix of 40% bio-fuel made from palm oil with 60% diesel.

20.10 mil kl of bio-fuel is expected to be needed if B50 is to be widely used. In case of B40, 15.62 mil kl of bio-fuel is said to be needed. The government is targeting to reduce carbon dioxide emissions and improve the trade balance by decreasing imports of petroleum products along with the use of domestically produced bio-fuel. The head of MEMR said, "If B50 becomes widely adopted, there will be no need to import diesel."

However, market participants considered that it may be hard to shift to B50 within next year and showed a view that B45 may be temporarily introduced. On the other hand, it was also possible that exports volume of palm oil will sharply decrease due to an increase in demand in the domestic market.