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NewsOils and Fats Sector Coverage

Indonesia Targets Rollout of B60 Biodiesel Blend in 2027

Fats and oils processing
September 3, 2026
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زيت النخيل أصبح وقودا لسيارات السباقات

The Indonesian government, through the Ministry of Energy and Mineral Resources (ESDM), is preparing to raise the mandatory biodiesel blend ratio from B50 to B60 starting in 2027, in one of the most significant shifts in the country's biofuel policy in recent years.

Deputy Minister of Energy and Environment for Sustainable Development, Yuliot Tangun, revealed that the B60 implementation plan is a direct instruction from President Prabowo Subianto, issued during the launch ceremony of the B50 programme on 9 July 2026.

Recounting the president's remarks at the event, Tangun said: 'When we launched B50, the President stated that B60 would be implemented the following year.'

Under the B60 scheme, diesel fuel will consist of 60 percent Fatty Acid Methyl Ester (FAME) derived from palm oil and 40 percent conventional diesel.

Tangun stressed that moving to the higher blend requires securing sufficient feedstock, particularly crude palm oil (CPO) used in FAME production. This, in turn, hinges on expanding upstream productivity in palm cultivation and scaling up downstream FAME manufacturing capacity.

'Achieving feedstock availability must be aligned across the value chain,' Tangun told reporters on Wednesday, 2 September. 'That means first securing sufficient CPO supply, whether through additional plantings or higher yields, and second expanding the FAME industry to enable B60 implementation.'

He added that the B60 mandate will apply to subsidised diesel fuels, including 'Biosolar', as well as non-subsidised variants.

The deputy minister confirmed that the government will conduct a comprehensive readiness assessment before rolling out the policy, emphasising that the presidential directive obliges authorities to pursue full implementation within the targeted timeline.

Source: VOI.ID