Government Targets B60 Implementation in 2027
03 Sep 2026
The Ministry of Energy and Mineral Resources (ESDM) is targeting the implementation of 60% biodiesel, or B60, next year. Deputy Energy and Mineral Resources Minister Yuliot Tanjung said the rollout of B60 forms part of the government’s strategy to achieve energy sovereignty in line with its Asta Cita priorities.
“This year we have already implemented B50, and when it was launched, President Prabowo Subianto stated that next year we will begin implementing B60,” Yuliot said at the Indonesia EBTKE Conference & Exhibition 2026 in Jakarta on Wednesday, 2 September.
B60 is a diesel fuel blend consisting of 60% palm oil-based Fatty Acid Methyl Ester (FAME) and 40% conventional diesel.
The main component of biodiesel is FAME, a methyl ester produced through the processing of fatty acids from palm oil. FAME is then blended with fossil diesel to produce biodiesel, which is widely used in the transportation and industrial sectors.
Yuliot said that to achieve the target, the government needs to ensure the availability of upstream raw materials, particularly crude palm oil (CPO). This will require either additional planting or improvements in productivity in the upstream palm oil industry.
In addition to securing CPO supplies, the government also needs to expand the FAME industry, as B60 is expected to be implemented for both subsidised and non-subsidised fuel.
“We also need to evaluate overall readiness, because this is already a directive from the President,” he said.
Director General of New, Renewable Energy and Energy Conservation Eniya Listiani Dewi said the government is currently consolidating the specifications for FAME, including whether B60 will eventually use a composition of 100% FAME or a combination of FAME and Hydrotreated Vegetable Oil (HVO).
HVO is a high-quality renewable diesel made from animal fats or vegetable oils through a hydrogenation process.
“I have asked the Indonesian Oil Palm Plantation Fund Management Agency (BPDPKS) to conduct a study, which is expected to be completed in December. After that, we will calculate what the next steps should be,” Eniya said on the same occasion.
B50 Implementation Reaches 80% by End-August
Eniya previously said that the distribution of 50% biodiesel, or B50, had reached only 80% overall by the end of August 2026.
“Overall, including both private-sector fuel companies and Pertamina, B50 distribution has reached 80%. But if we look at Pertamina alone, distribution is already close to 90%,” Eniya said when met at the House of Representatives complex in Jakarta on Monday, 31 August.
B50 has been implemented since 9 July 2026. Although implementation is already under way, the government has established a three-month transition period following the rollout. ESDM is still waiting for the remaining month of the transition period to be completed.
She said the government will continue monitoring and evaluating the implementation of B50 to ensure that the biofuel is distributed properly.
According to Eniya, B50 implementation has already reached Indonesia’s outermost areas. “It most likely has already reached eastern Indonesia, because in Papua there is only one delivery point,” she said.