Deputy Energy Minister Targets Indonesia's B50 Implementation in 2026

September 23, 2025 | 03:31 pm

TEMPO.CO, Jakarta - Indonesia's Energy and Mineral Resources (ESDM) Deputy Minister Yuliot Tanjung announced that Indonesia will begin implementing B50 biodiesel fuel in 2026.

The fuel, a blend of 50 percent biodiesel and 50 percent conventional diesel, is expected to support the country’s net zero emission target by reducing dependence on fossil fuels.

“The impact on clean energy and the environment will be better in the long run,” Yuliot said during the Green Energy Summit at JW Marriott Jakarta on Tuesday, September 23, 2025.

According to Yuliot, the ministry has consolidated preparations for the rollout of B50 and hopes the government’s target can proceed on schedule. However, despite its environmental benefits, the program faces several challenges—chief among them the limited domestic supply of methanol, a key component in B50 production.

In March 2025, Yuliot highlighted that Indonesia requires around 2.3 million tons of methanol for B50 production, yet domestic availability in the first quarter of the year reached only 300,000 tons. This shortfall means approximately 2 million tons would still need to be imported.

To address the gap, the government is encouraging investment in local methanol production. Energy and Mineral Resources Minister Bahlil Lahadalia revealed plans to establish a methanol plant in Bojonegoro to reduce reliance on imports.

“So far, we rely on up to 80 percent imports. That is why we are pushing for the construction of a methanol plant in Bojonegoro,” Bahlil said at his office on Friday, January 10, 2025.

Dani Aswara contributed to the writing of this article.

Editor’s Choice:  Indonesian Foreign Ministry Explains Prabowo's Microphone Cutoff at UN Assembly

Click here to get the latest news updates from Tempo on Google News

Malaysia Lowers RON 95 Fuel Price, What About Indonesia?

23 jam lalu

Indonesia's Latest Fuel Prices: Pertamina, Shell, BP, and Vivo Stations

1 hari lalu

How Indonesia's Finance Minister Aims to Reduce Electricity Subsidies Without Tariff Hikes

2 hari lalu

Indonesia's Energy Minister Urges Shell Stations to Avoid Layoffs Amid Fuel Shortages

3 hari lalu

West Java's Depok Shell Stations Run Dry on Fuel, Employees Sell Coffee Instead

4 hari lalu

Indonesia's Geothermal Power Capacity Rises to 2.71 GW

5 hari lalu

Fuel Shortage: Energy Minister Calls on Private Firms to Collaborate with Pertamina

6 hari lalu

Shell Indonesia Talks of Impact of Fuel Shortages on Business

6 hari lalu

Indonesia Gov't Denies Monopoly on Fuel Supply at Private Gas Stations

6 hari lalu

Pertamina's Single-Entry Fuel Import System Complies with Regulations: Minister

7 hari lalu