Indonesia announces introduction of B50 biodiesel from Jul Indonesia has announced that it will introduce B50 biodiesel starting Jul 1. B50 consists of a 50-50 blend of conventional diesel fuel and biodiesel produced from palm oil, and will be used primarily for land transportation. At present, the country mandates the use of B40 biodiesel. The move comes as international prices of fossil fuels remain elevated amid tensions in the Middle East, while concerns over supply security persist. In addition, countries such as Indonesia that provide subsidies for gasoline and diesel fuel have faced growing fiscal pressure due to rising energy costs.

As the world's largest producer and exporter of palm oil, Indonesia aims to strengthen its energy security and reduce dependence on imported petroleum products by making greater use of domestic resources. According to government estimates, widespread adoption of B50 could reduce petroleum product imports by 4 million kiloliters annually and lower the government's fiscal burden by 48 trillion rupiah (approximately USD 3 billion) per year.

Meanwhile, market players estimate that B50 will require about 20.1 million kiloliters of biodiesel feedstock annually for blending, roughly 30% more than is needed under the current B40 mandate. As a result, questions persist over whether sufficient supplies can be secured and distributed smoothly on a sustained basis.