Key insights and market outlook
The Indonesian Ministry of Energy and Mineral Resources has set the 2026 biodiesel allocation at 15.646 million kiloliters. The allocation is divided between Public Service Obligation (PSO) at 7.454 million kL and non-PSO at 8.192 million kL. This decision, outlined in Ministerial Decree No. 439.K/EK.01/MEM.E/2025, aims to support Indonesia's renewable energy targets and reduce dependence on fossil fuels.
The Indonesian Ministry of Energy and Mineral Resources (ESDM) has officially determined the 2026 biodiesel allocation at 15.646 million kiloliters. This decision, formalized through Ministerial Decree No. 439.K/EK.01/MEM.E/2025, outlines the distribution between Public Service Obligation (PSO) and non-PSO categories.
The total allocation of 15.646 million kiloliters is divided into two main categories:
This allocation is part of Indonesia's broader strategy to promote renewable energy and reduce dependence on fossil fuels. The biodiesel program is crucial for achieving national energy security and environmental objectives. The decision reflects the government's commitment to maintaining a balanced energy mix while supporting the agricultural sector through increased demand for biofuel feedstocks.
2026 Biodiesel Allocation Announcement
Renewable Energy Policy Update