November 14, 2025 | 07:30 am
TEMPO.CO, Jakarta - Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has announced a nationwide road test for B50 biodiesel, a 50 percent palm oil and 50 percent diesel fuel blend, scheduled to begin on December 3, 2025.
The trials will cover a wide range of applications, including passenger vehicles, ships, agricultural machinery, mining vehicles, trains, and power generators, with testing periods varying across sectors.
“Some tests will take two months, others four, six, or up to eight months,” said Eniya Listiani Dewi, Director General of New and Renewable Energy and Energy Conservation, during the Indonesia Palm Oil Conference 2025 in Nusa Dua, Bali, on Thursday, November 13, 2025.
Eniya emphasized that the road test process will be conducted transparently. She said any issues, such as engine breakdowns at 30,000 or 50,000 kilometers or generator failures, will be publicly reported.
The government plans to implement B50 nationwide in the second half of 2026 as part of efforts to strengthen energy security and reduce reliance on imported diesel. Indonesia has progressively increased its biodiesel blend over the past decade, moving from B10 to B20, B30, and currently B40.
Minister of ESDM Bahlil Lahadalia highlighted the positive impact of the biodiesel program on domestic palm oil farmers. He also noted that President Prabowo Subianto has approved the B50 policy. “Using crude palm oil domestically will raise selling prices for farmers,” Bahlil said.
However, experts urge caution. Bayu Krisnamurti, a professor at IPB University, warned that increasing the blend from B40 to B50 could strain subsidies, reduce palm oil exports, and push up cooking oil prices.
“If not carefully managed, the competitiveness of the palm oil industry could decline,” he said.
Bayu stressed that B50’s success depends on balancing energy independence, export competitiveness, and farmer welfare.
Simulations suggest B50 could save up to Rp172 trillion in diesel imports, but potential losses from reduced exports could reach Rp190 trillion.
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