Indonesia Officially Implements B50 Biodiesel from July
2026-07-10 08:58
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en.Wedoany.com Reported - Indonesia is accelerating the promotion of high-blend biodiesel, with some vehicle owners already modifying their cars to use B50 fuel.

The government plans to decide in June on increasing the ethanol blending ratio in gasoline to 32%

Indonesia is the world's largest producer and exporter of palm oil. Since crude oil prices surged due to regional conflicts in February this year, Indonesia has accelerated testing of B50 fuel, a blend of 50% palm oil-based biodiesel and 50% conventional diesel. Jakarta officially began implementing this biofuel blend on July 1.

Global oil prices remain high, causing the price of unsubsidized conventional diesel in Indonesia to rise by up to 46% this year. In early July, conventional diesel was priced at 21,150 Indonesian rupiah (approximately $1.17) per liter, more than three times the subsidized biodiesel price of 6,800 rupiah per liter. Faced with this price gap, some consumers have been forced to modify their vehicles to use subsidized fuel.

Arnoldus Yusuf, a 58-year-old retiree, said he can no longer afford unsubsidized fuel. He spent 4 million Indonesian rupiah on modifications, with the repair shop injecting additives into the vehicle to protect the fuel system from corrosion and prevent filter clogging, installing an oil-water separator, and reprogramming the vehicle's computer to ensure the engine check light does not illuminate when using biodiesel.

The B50 program has also created business opportunities for the modification industry. Aong Ulinnuha, a 51-year-old repair shop operator running a business in Tangerang on the outskirts of Jakarta, said the number of customers coming in for modifications has increased significantly due to the scarcity of shops offering such services. He also noted that vehicles using this fuel require more frequent fuel filter replacements, as biodiesel produces more sediment than conventional diesel.

The program also faces challenges. Efforts toward a peace agreement in Iran have led to a decline in crude oil prices, while palm oil prices, typically higher than diesel and still at elevated levels, have increased the government's subsidy burden. Despite this, the Indonesian government remains positive about B50. At the official launch event on Thursday, President Prabowo Subianto called the 50-50 blend "an extraordinary achievement for the nation" and stated that efforts would continue, potentially achieving B60 in the future.

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