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Indonesia Aims to Cease Diesel Imports by 2026 with New Biodiesel Programs

Indonesia Aims to Cease Diesel Imports by 2026 with New Biodiesel Programs

Jakarta: The Indonesian government is taking significant steps towards energy independence by planning to implement a mandatory 50% biodiesel (B50) program by 2026, as announced by Minister of Energy and Mineral Resources Bahlil Lahadalia. This initiative aims to eliminate the country’s reliance on diesel imports.

According to Lao News Agency, the government is initiating an energy transition program, starting with the mandatory B40 biodiesel implementation this year, and preparing for the B50 rollout next year. Minister Bahlil Lahadalia emphasized that the B50 program aligns with President Prabowo Subianto’s directive to achieve energy security in Indonesia.

Minister Lahadalia highlighted that the B50 program will enhance Indonesia’s energy reserves, support the goal of meeting domestic energy needs, and reduce import dependence. This shift is expected to bolster the country’s ability to handle its energy demands internally.

Deputy Minister Yuliot Tanjung also noted that the mandatory B40 biodiesel policy would be fully implemented by February this year. B40 consists of a mix of 60% diesel fuel and 40% biofuel derived from palm oil. While B40 became mandatory on January 1, Tanjung mentioned that a transition phase of approximately 1.5 months is currently in place to utilize remaining fuel stocks and update necessary technologies.

Tanjung further added that the first phase of the B40 program is projected to produce 15.6 million kilolitres of biodiesel, with production continuing in stages throughout the year.