A senior Indonesian government official said that the government had indicated that it was not necessarily insisting on introducing bio-diesel B50 in 2026. B50 consists of 50% of diesel oil and 50% of bio-fuel made from palm oil and is used as a land-based transportation fuel. In the country, the use of B40 is mandatory. In the international market, prices for palm oil have exceeded crude oil prices more than initially anticipated, and production costs of bio-diesel are getting higher as well. Under this circumstance, promoting the adoption of B50 in Indonesia could impose a heavier fiscal burden than maintaining imports of oil products. The government provides subsidies for most of the bio-diesel available domestically, and expenditure is expected to increase due to rising palm oil prices. In addition, field tests for B50 has yet to be completed. Movements of the international palm oil prices will likely determine when the government will introduce B50 in the future.