Indonesia to Allocate Rp51 Trillion for Biodiesel Incentives in 2026

Consistent Allocation for B40 Program

The Indonesian Ministry of Energy and Mineral Resources (ESDM) has projected that Rp51 trillion will be required for biodiesel incentives in 2026 to support the implementation of the B40 mandatory program. This projection is relatively consistent with the allocation for 2025, indicating a stable commitment to the biodiesel initiative.

Biodiesel Volume Remains Steady

The biodiesel volume for 2026 has been set at 15.65 million kiloliters, which is not significantly different from the 15.6 million kiloliters allocated in 2025. This steady volume is the primary reason for the similar incentive allocation. According to Eniya Listiani Dewi, Director General of New Renewable Energy and Energy Conservation (EBTKE) at the Ministry of ESDM, the similarity in biodiesel volume between the two years justifies the comparable incentive amounts.

Government Commitment to Biodiesel Program

The consistent allocation for biodiesel incentives demonstrates the Indonesian government's commitment to maintaining and supporting the B40 program. This program is part of the country's efforts to reduce dependence on fossil fuels and promote renewable energy sources. The significant financial allocation underscores the government's dedication to energy diversification and environmental sustainability initiatives.