Indonesia Accelerates Biofuel Adoption to Reduce Imports

Dual Strategy: E10 Gasoline and B50 Diesel

The Indonesian government is implementing a comprehensive biofuel strategy with two major components: introducing E10 gasoline (10% ethanol blend) by 2028 and advancing the B50 diesel program (50% biodiesel blend) ¹

. Energy Minister Bahlil Lahadalia confirmed that the roadmap for mandatory E10 is nearing completion and is expected to be implemented by 2028 at the latest.

The B50 diesel program is currently in the trial phase and is expected to be completed in the first half of 2026, with potential full implementation in the second half if successful ¹

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Source 2

https://industri.kontan.co.id/news/realisasi-b40-capai-142-juta-kiloliter-pemerintah-yakin-bebas-impor-solar-di-2026

. This follows the successful implementation of the B40 program in 2025, which achieved 105.2% of its target with 14.2 million kiloliters of biodiesel utilization ²

Source 2

https://industri.kontan.co.id/news/realisasi-b40-capai-142-juta-kiloliter-pemerintah-yakin-bebas-impor-solar-di-2026

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Significant Reduction in Solar Imports

The B40 program has delivered substantial results, contributing to a 3.3 million ton reduction in solar imports between 2024 and 2025 ³

. In 2024, solar imports stood at 8.3 million tons, which decreased to 5 million tons in 2025. This reduction has not only saved significant foreign exchange but also resulted in Rp 130.21 trillion in foreign exchange savings and reduced CO2 emissions by 38.88 million tons ³

Source 3

https://finance.detik.com/energi/d-8298356/impor-solar-turun-3-3-juta-ton

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Path to Complete Solar Import Elimination

The success of the B40 program has provided a strong foundation for the government's ambitious target to completely eliminate solar imports by 2026. Key factors supporting this goal include:

1. Successful implementation of B50 biodiesel
2. Upcoming operationalization of the Refinery Development Master Plan (RDMP) in Balikpapan
3. Continued sufficient supply of crude palm oil (CPO) for biodiesel production

While the government is optimistic about achieving zero solar imports, it acknowledges that certain high-quality solar products (CN51) for industrial use may still require limited imports due to current domestic production limitations ³

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Economic and Environmental Impact

The biodiesel program has demonstrated significant economic benefits, including:

• Rp 130.21 trillion foreign exchange savings
• Rp 20.43 trillion added value for CPO through biodiesel production
• 38.88 million tons CO2 equivalent emissions reduction

These initiatives position Indonesia at the forefront of renewable energy adoption in the region while addressing both economic and environmental objectives.