Indonesia has completed laboratory testing for a new 50% palm oil-based biodiesel blend (B50) as part of its plan to raise the mandatory biofuel mix from the current 40% (B40), the Ministry of Energy and Mineral Resources said. 

The laboratory tests, which involved running diesel engines with the B50 blend, were completed in August, according to the ministry’s bioenergy director, Edi Wibowo. “Based on the test results, we will move forward to launch road tests and testing on non-automotive machinery that run on diesel,” he told Reuters on Tuesday. The schedule for the road trials has not yet been determined. 

Indonesia aims to make B50 mandatory in 2026, though it is unlikely to begin in January, a senior ministry official said earlier. Data from the energy ministry shows that adopting B50 would require 20.1 million kiloliters of palm-oil-based biofuel per year, compared to 15.6 million kiloliters under B40. 

The expansion of biodiesel blending is intended to reduce imports of fossil fuels and support Indonesia’s renewable energy goals. The country, the world’s largest palm oil producer, has used palm-oil-based biodiesel for over a decade. 

Separately, Indonesia is preparing a bioethanol-blended fuel mandate to cut carbon emissions and reduce gasoline imports. Energy Minister Bahlil Lahadalia said the government plans to require a 10% bioethanol content for all gasoline sold in the country. 

“We had a meeting with the president yesterday evening. The president has agreed on the 10% bioethanol mandatory plan,” Lahadalia said, as quoted by state news agency Antara. He added that the policy aims to lower gasoline imports, which currently account for 60% of national consumption. 

State-owned energy company Pertamina said it is ready to support the implementation of the bioethanol plan. Pertamina CEO Simon Aloysius Mantiri confirmed the company’s readiness, while the firm also announced efforts to boost domestic oil production and upgrade its Balikpapan refinery, expected to begin operations in November. 

According to data from Apsendo, the Association of Indonesian Methylated Spirits and Ethanol Producers, Indonesia’s bioethanol production capacity in 2024 stood at 303,325 kiloliters per year. Actual production reached 160,946 kiloliters, with imports of 11,829 kiloliters. Domestic demand totaled 125,937 kiloliters last year, while exports amounted to 46,839 kiloliters.