Lang
Agriculture Minister Andi Amran Sulaiman said on Sunday that imports of low-grade diesel fuel will cease from 1 July, as the government implements its mandatory B50 biodiesel programme.
The policy will raise the share of palm oil-based biodiesel in subsidised low-grade diesel, known locally as Solar, from the current 40% to 50%.
Speaking in Surabaya, Amran said: "We will no longer import Solar starting 1 July, when the B50 programme takes effect. This is Indonesia's energy of the future because its source comes from palm oil."
Indonesia has aggressively expanded biofuel use as part of efforts to reduce reliance on imported petroleum products and strengthen domestic energy security.
Amran added that the government is also developing a biofuel blend for petrol in cooperation with state-owned plantation company Perkebunan Nusantara IV.
Earlier this year, Energy and Mineral Resources Minister Bahlil Lahadalia said Indonesia had recorded a surplus of around 1.4 billion litres of subsidised low-grade diesel fuel.
The surplus emerged alongside a sharp increase in biodiesel production under Indonesia's B40 policy, which mandates a 40% biodiesel blend in diesel fuel sold domestically.
Government data show biodiesel consumption rose to 14.2 billion litres in 2025, up from 9.3 billion litres in 2021.
Bahlil explained that the additional domestic supply also came from the commissioning of a new refinery in the city of Balikpapan, which strengthened national diesel output.
According to the minister, biodiesel use in 2025 reached 105.2% of the government's target of 13.5 million kilolitres, helping cut fossil diesel imports by around 3.3 million kilolitres.
Bahlil said: "Indonesia now has a diesel surplus of approximately 1.4 million kilolitres."
He added that the government is also preparing to phase out imports of mid and high-octane petrol starting in 2027.