Indonesia implements the B40 policy in 2025. (Photo: ESDM)
Indonesia’s B40 policy, which mandates a 40% palm oil mix with 60% diesel, was initially set to take effect on January 1, 2025. However, officials have confirmed a delay until February, giving businesses a 1.5-month grace period. Furthermore, the government has announced that by 2026, the biodiesel blend will increase to B50, with plans to completely halt diesel imports.
Biodiesel B40 rolls out in phases
The Ministry of Energy and Mineral Resources (ESDM) of Indonesia, through Vice Minister Yuliot Tanjung, emphasized that the mandatory B40 biodiesel blend policy, which incorporates 40% palm oil, officially began on January 1, 2025. However, the first six weeks will serve as an adaptation period. During this time, businesses will exhaust their remaining stock of B35 biodiesel, while related technologies will be adjusted accordingly.
