Indonesia Implements Comprehensive Biodiesel Policy for 2026

Biodiesel Allocation for 2026

The Indonesian government, through the Ministry of Energy and Mineral Resources (ESDM), has officially set the 2026 biodiesel allocation at 15.646 million kiloliters ¹

. This allocation is divided into two main categories: 7.454 million KL for Public Service Obligation (PSO) and 8.191 million KL for non-PSO ¹

Source 1

https://finance.detik.com/energi/d-8274953/bahlil-tetapkan-alokasi-biodiesel-tahun-depan-15-6-juta-kiloliter

. The decision was formalized through Ministerial Decree No. 439.K/EK.01/MEM.E/2025, which also designated the fuel companies responsible for implementing the biodiesel program.

Implementation and Supporting Infrastructure

The biodiesel program for 2026 will be supported by 32 fuel companies (BU BBM) and 26 biofuel companies (BU BBN) that have been appointed by the government ¹

. The program will maintain the incentive scheme for the PSO sector, similar to previous years. This comprehensive approach aims to ensure the successful implementation of the mandatory biodiesel program while maintaining supply stability.

Restrictions on Private Fuel Imports

In a related policy move, the Ministry of ESDM announced that private fuel stations will only be allowed to import diesel fuel until March 2026 ²

. Starting April 2026, all diesel fuel requirements must be met through purchases from Pertamina, the state-owned oil company. This policy aligns with the government's broader objective of completely stopping diesel imports by 2026, made possible by the operationalization of the Refinery Development Master Plan (RDMP) project ²

Source 2

https://finance.detik.com/energi/d-8276556/spbu-swasta-cuma-boleh-impor-solar-sampai-maret-2026-sisanya-beli-di-pertamina

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Implications for Energy Security

These policy decisions demonstrate Indonesia's commitment to enhancing energy security through increased domestic refining capacity and promoting the use of biodiesel. The successful implementation of these policies is expected to reduce reliance on imported fossil fuels, support the domestic biofuel industry, and contribute to the country's energy sustainability goals.